In recent years, there is an extreme increase in road vehicle usage which in turn a challenge to manage the traffic system. The current traffic system is not based on the vehicle density level and a pre-established time is distributed to the traffic lights for every lane crossing which had an issue like traffic congestion & wastage of time and this condition turns out to be worse in the peak hours, and it also increases the emission of CO2 in the environment. In this paper, real-time dynamic traffic management system based on density level of each junction with the help of approximate geo-density information is developed. The density level on each junction is then updated to the real-time database. Then, this real-time data is computed with an exclusive priority-based algorithm where the crossing with high density is prioritized over the other (emergency vehicles are given the maximum priority) while maintaining the congestion around the junction under control. The prototype of GPS based real-time traffic management system is implemented and tested.