Highways England said the move offers 'little additional benefit'.
Construction was initially forecast to be completed early in 2020 after initially being proposed in 2014.
Now the plan has been dropped and instead the road will incorporated in to the Road Investment Strategy 3, which runs from 2025.
Highways England Regional Director, Andrew Jinks, said:
“We have assessed the feasibility, value for money and timing of the A5 Dodwells to Longshoot scheme alongside the proposed, larger, A5 Hinckley to Tamworth scheme which is being considered for potential inclusion in Road Investment Strategy 3.
'We have concluded that it makes sense to incorporate A5 Dodwells to Longshoot within the larger scheme.
“In 2015 we delivered two improvement schemes at junctions either end of the proposed Dodwells to Longshoot widening scheme and dualling that stretch of the A5 would now offer little additional benefit.”

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