Wightlink is to build a new ship and improve ports on its Portsmouth-Fishbourne route as part of a £45 million investment.
The ferry operator said the project is the biggest ever single investment in services.
It comes after the introduction of new ferries on its Lymington-Yarmouth and Portsmouth Harbour-Ryde Pier Head routes.
In the next phase, Wightlink will build a new ship, which it claims will be the most environmentally friendly ferry ever to sail across the Solent.
It will also extend its current flagship St Clare to carry more vehicles and will build a new terminal building at Portsmouth Gunwharf.
It expects the port improvements to be finished by summer 2017 and the new ship to arrive in spring 2018.
