£2 million fund for councils to improve motorists' journeys using new technology.
Local authorities have been invited by the Department for Transport to apply for a share of the money to develop projects to greatly enhance journeys.
Proposals include using technology that will allow vehicles communicate with each other and roadside sensors to provide the drivers with real-time traffic information.
Councils will also look at how warnings about changing weather and traffic conditions can be sent directly to vehicles, so drivers can plan ahead - helping deliver quicker, more efficient and safer journeys.
Under a previous scheme, Westminster City Council has been building an app that directs drivers to empty parking spaces in central London and then takes payments automatically for using the spot.
Councils across England will have until the end of September to apply for the funding.
Roads Minister Andrew Jones said:
"I want to deliver better, more enjoyable journeys and this £2 million fund will help councils invest in new technology to enhance the experience of driving.
"Britain has a proud history of innovation and I am delighted that councils will be able to use this money to develop systems to make journeys easier and safer."
Bids are expected to range between £30,000 and £300,000 and councils are expected to provide at least 5% of their project’s cost.
They have until 5pm on Friday 30 September 2016 to submit their bids and successful councils will be revealed in November. Schemes would be expected to complete by March 2018.
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Source: Gov.uk (Contains public sector information licensed under the Open Government Licence v3.0.)