The roundabout at the intersection of Banyan Street, Merri Street and Pertobe Road is being upgraded to make it safer for motorists, cyclists and pedestrians.
The project is funded via the Federal Government's Blackspot Program and the Warrnambool City Council.
Warrnambool Mayor Vicki Jellie said that the works would help improve traffic safety at the gateway to Warrnambool's foreshore.
"The pavement at the intersection is due to be replaced, and we have taken the opportunity to apply for Federal Government funding to cover the majority of the works and make the intersection safer at the same time with a number of other improvements," she said.
"This can be a very busy intersection, especially during summer and on hot days, with cars, cyclists and pedestrians all going to and from the foreshore area.
"The Pertobe Road side of the intersection especially will see a big improvement, with no accessible pedestrian refuge currently in place at this commonly used crossing point.
"By making the roundabout larger and installing raised humps and pedestrian refuges at all crossing points, the aim is to slow the traffic down and make the intersection safer to use for everyone.
"There's never an ideal time to disrupt traffic at such an important intersection, but the works have been scheduled to avoid the peak holiday season, and we'd like to thank all road users for their patience."
Works will begin on April 20 and run for approximately seven weeks.
While the intersection is being upgraded, through traffic will not be possible along Merri Street.
Vehicles will still be able to drive north and south along Banyan Street and Pertobe Road via a single alternating lane of traffic through the intersection, but should plan for delays.