The European Commission's (EC) Innovation and Networks Executive Agency (INEA) has granted approval for the new €318.5m worth project, designed to improve the airspace management in Europe.
The project seeks to modernise and harmonise air traffic management (ATM) systems and procedures across 24 EU Member States.
According to EC, it is one of ten EU supported projects worth €364m, which are being carried out under the Single European Sky ATM Research (SESAR) programme.
The project, which was approved under the Connecting Europe Facility (CEF), will be managed by the SESAR Deployment Manager.
SESAR Deployment Manager is a body designed to facilitate the implementation of European ATM research and integration.
SESAR Deployment Manager managing director Massimo Garbini said: "This grant agreement represents a very important step in the actual deployment of SESAR solutions."
Selected under the 2014 CEF Transport calls, the projects are financed through €13bn fund to improve European transport infrastructure, promote transport safety, develop intelligent transport systems and reduce the environmental impact.
INEA executive director Dirk Beckers said: "It is of utmost importance for the European Union to support transport infrastructure projects bringing the continent closer to having one continuous, safe and interconnected transport network.
"In this context air transport will greatly benefit from improved synergies and integration and the EU will help the sector deliver by supporting key projects."