It has opted for a roundabout to be built at Sheriffmill Road, midway between the north end of Wittet Drive and the road bridge across the River Lossie.
The construction of the distributor road will require the acquisition and demolition of two residential properties in Wittet Drive and the acquisition of garden ground from six other properties.
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Moray Council's economic development and infrastructure services committee was presented with three options for a new junction linking the route of the distributor road with the A96.
The proposal will now be the subject of consultation with Wittet Drive residents and those directly affected by the necessity for property and land acquisition, is estimated to cost £3million.
Committee chairman Councillor John Russell commented on the importance of immediate engagement with residents in the Wittet Drive area to minimise their uncertainty and anxiety.
He also stated: "The creation of an effective western distributor road is essential to the economic prosperity not only of Elgin but of Moray."
Elgin councillor John Divers said he continued to oppose the demolition of any homes but conceded that the preferred option was the "least painful" one for local residents.
(JG/CD)
