The go-ahead follows a successful bid by the Council's Infrastructure and Design Services and Ayrshire Timber Transport Group for a £1m grant from the Scottish Government's Strategic Timber Transport Fund, which is managed by the Commission.
The Council's Executive Committee were advised of the grant on Tuesday.
The grant is for 2010/11. Further funding bids will be made for the following two years.
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It meets almost half the cost of improving sections of The String, Machrie Moor, C147 South Kilpatrick and Cemetery Roads on Arran. The rest of the money comes from the Council's budget and other sources.
The Council's Infrastructure and Design Services will carry out the design, construction and supervision of the work. It will involve carriageway reconstruction and reinforcement, including drainage and verge improvements.
Additional road material and machinery will be supplied by the Commission as part of a partnership agreement.
Councillor Tom Barr, Executive Member for the Environment, said: "More timber is going to be harvested and shipped from Arran over the coming years. This has given us an excellent opportunity to improve the island's roads for all users - residents, visitors and timber haulage operators."
The work will be extensive and details of traffic arrangements for closures, diversions etc will be announced in due course.
(GK/KMcA)
