The B5605 in Newbridge near Chirk has been closed since the damage caused by Storm Christoph in January 2021.
Wrexham Council has been given the funding to carry out vital repairs and work will begin later this year.
The road, normally as a busy commuter route for residents, also provides a diversion option for the A483.
Local people have been calling for the road to be reopened earlier but the Welsh Government says that because of the severity of the damage a series of complex surveys and cost analysis had to be carried out by Wrexham Council to establish the extent of repair needed before work could begin to make the road operational again.
The Deputy Minister for Climate Change with responsibility for Transport, Lee Waters said: "Climate change will increase the intensity and frequency of storms and other extreme weather events, putting added pressure on infrastructure. That’s why the Welsh Government is carrying out a nationwide roads review to balance spending between new road construction, and adapting and maintaining existing ones.
"The Welsh Government is also investing heavily in public transport to make it an easy alternative for more people, further releasing pressure on Wales’ roads."
Local Welsh Assembly Member, Ken Skates, said: "I’m delighted that this vital project can now get under way and would like to thank the Welsh Government for this crucial investment in our area.
"I would also like to thank councillors Frank Hemmings and Derek Wright for their work on this important local issue, as well as Wrexham Council’s lead member for the environment David Bithell. I’m pleased that by working together we have been able to help secure this vital funding for our area."
Mr Walters said: "Storm Christoph had devastating consequences for communities when it hit Wales last year, causing major disruption to our infrastructure and roads.
"Throughout the long recovery process we have been working very closely with all local authorities and I am pleased that we have been able to provide vital funding for Wrexham Council to make the necessary repairs to this road through our Resilient Roads Fund.
“We continue to work hard to build resilience in our travel networks and wider infrastructure as we plan ahead for climate change.”
Ian Bancroft, Chief Executive for Wrexham Council said: “Repairing this road will make a massive difference to people in Newbridge, Cefn Mawr and Rhosymedre – as well as surrounding communities like Plas Madoc, Ruabon and Chirk.
“It’s not a straight-forward road-repair – the damage is substantial and we’ve had to undertake a lot of in-depth geo-technical assessments and cost analysis.
“But we’re delighted we’ve been able to secure this funding, and look forward to reopening this key piece of infrastructure.”