To reduce traffic congestion and improve the overall traffic capacity of roads, the municipal reconstruction of arterial roads from high-grade highways often involves setting up auxiliary roads on both sides of the road. This paper analyzes the existing methods of determining the configuration of urban arterial road off-ramps and proposes a novel design method, includes adding a “waiting for merging” section. Based on the traffic flow characteristics of the main roads, auxiliary roads, as well as off-ramps, second-stage deceleration theory and the insertable gap theory are applied. Considering the worst-case of diverted vehicles, a calculation model for the length of the urban arterial road off-ramps is proposed and utilized to calculate the advisory values for each segment of the off-ramps. Taking the reconstruction of an expressway in Hubei Province, China, as a case study, Vissim traffic simulation software was used to compare the proposed method with the traditional design method under four different traffic volumes. The results show that the proposed design method greatly improves the overall traffic capacity of roads compared with the traditional method, with a reduction of approximately 40% and 60% in delay time and queue length for the overall traffic, respectively. Furthermore, the research results can provide direct and effective design solutions and a basis for decision-making for setting the length of main and auxiliary road off-ramps.