The Government wants to build new experimental roads in the West Midlands which are designed specifically for driverless cars.
It is to launch a competition inviting organisations to explain what the roads of the future should look like.
And it will then build the best entries in the West Midlands, so that they can be tested.
The plan is revealed in the Government's Industrial Strategy, published by Business Secretary Greg Clark and Prime Minister Theresa May.
The thinking behind it is that roads will have to change if the Government is going to achieve its goal of getting fully self-driving cars, which don't need any help from a human operator, on the UK's roads by 2021.
The Strategy document states: "The National Infrastructure Commission will also launch a new innovation prize to determine how future roadbuilding should adapt to supporting selfdriving cars, with the West Midlands, a UK centre of expertise on connected and autonomous vehicles, being a key testing location for the best entries."
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