The state of the New Bridge, which takes traffic travelling along the A92 coastal route across the River Bervie and into the Royal Burgh, has long been of concern to residents.
At last week's Inverbervie Community Council meeting fears were expressed that the standing water, which collects on the bridge when it rains, would result in further deterioration of the structure.
Members were concerned that if action was not taken swiftly, the repairs needed would be so extensive that the bridge would be forced to close, causing great disruption to coastal communities.
But the council has now agreed a new capital plan and has allocated more than £1.3 million to the project, over the next three years.
In 2008, £421,000 will be spent, that will increase to £454,000 next year and in 2009 £439,000 will be provided for the work.
Kincardine and Mearns area manager Willie Munro said the bridge, built in 1935, had undergone major refurbishment in the 1970s but corrosion of the reinforcements was now affecting the concrete and a major overhaul was required.
"We are now in a position where substantial work is needed but finding the money for a project of this scale is not always easy," he said.
"It is a challenge to get such a high sum from the capital programme for one bridge in one village but that has now happened and it's great news for Inverbervie.
"The A92 is a very important road and the bridge has been a concern in the community for some time. If the bridge had needed to close for any reason then it would have been a problem for people living in the coastal communities but everything should be on track now to get the bridge repaired."
Mearns councillor George Carr said: "It is a major artery along the coast and it is good to see money has been apportioned to get it sorted out before it deteriorates any further.
"Hopefully once the structural work is underway we can also get some of the more minor issues, like repainting the lights, done as they were also of concern to the community council."
A spokesman for Aberdeenshire Council said that the first phase of work, expected to take 55 weeks, would soon be underway.
"We can confirm that the works on the bridge are due to start towards the end of July," he added.
"The bridge will remain open during this period, with traffic management measures in operation."