The local highway authority may by agreement with the MinisterF2or a strategic highways company undertake the maintenance and improvement of a highway in F3the local highway authority's area, being a highway (other than a trunk road) which the MinisterF4or the company proposes to construct or has, whether before or after the commencement of this Act, constructed.

Where an agreement is made under this section the council who are a party to the agreement shall, on such date as may be provided by the agreement, become the highway authority for the highway to which the agreement relates.