The firm will develop the Inverness West Link Stage 1 project as well as the Canal Parks Enhancement scheme, which involves developing enhanced sports facilities alongside the West Link.
Cllr Audrey Sinclair said: "This award of contract is a major step which will see the construction of the final phase of the Inverness Southern Distributor Road linking the Dores Road roundabout to Glenurquhart Road.
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"It will provide an alternative east-west route across the city of benefit to locals and the wider Highlands. It will also help relieve city centre congestion and provide new active travel routes across to the sports facilities at the Bught Park from the east of the city."
Cllr Helen Carmichael added: "This road has been in plans for Inverness for over 40 years and will help to facilitate the city's continued growth.
"The new facilities at Canal Park will provide state of the art facilities for rugby and other sports to the benefit of Inverness and the wider Highlands."
Discussions are taking place with Wills Bros to allow an early start on the works, which are scheduled to begin in late 2017.
Council Leader Margaret Davidson said: "This will provide a welcome boost to the local economy at a time when there are job losses in other sectors such as Oil and Gas.
"The West Link project is a key part of helping deliver infrastructure for growth as part of the Council's Highland First commitments."
(LM/MH)
