The boost will see the £31.4m project finally start to move forward to the delivery stages.
Once the scheme is completed, some 595 properties in the Bannerfield, Philiphaugh and Riverside areas will be removed from the national flood risk register. It will also protect against the effects of flooding from the Ettrick and Yarrow waters, as well as the Long Philip and Shaw burns.
The construction procurement and construction works stages will run in parallel, with the main project works expected to begin in November 2014, with a scheduled completion date of December 2016.
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Councillor Gordon Edgar, Executive Member for Roads and Infrastructure, said: "This is fantastic news for Selkirk. A lot of hard work has gone into reaching this stage, and I know the Council appreciates the feedback from stakeholders and the people of Selkirk throughout the process.
"This project will effectively remove the risk of flooding for the Riverside area, where the majority of businesses in Selkirk are based, and make it easier for these companies to achieve flood insurance.
"Hopefully that can lead to the regeneration of the area and encourage the creation of jobs."
Project Manager for the scheme, Conor Price, added: "This is a huge milestone for the project. The design that was started in October 2009 is now complete and the project team are changing their focus to project delivery and construction.
"Over the coming months there will be a steady increase in works activity in Selkirk as we commence the public utility diversions, pre-construction archaeology survey and prepare for the Main Works Contract.
"With this in mind we have just restructured the scheme website and created a new page that will provide regular updates through the construction period."
(JP/MH)
