Latrobe City Council is upgrading the intersection at Traralgon-Maffra Road and Marshalls Road in Traralgon and widening Marshalls Road.
As part of the Traralgon North Development Plan, the intersection will be upgraded to a signalised intersection, providing safer turn movements for traffic in all directions.
Widening and upgrade works will also extend down Marshalls Road, making the road look the same from Park Lane to the upgraded intersection.
These upgrades will complement the adjacent supermarket and specialty shops that are currently under construction.
Works will widen existing road pavements, provide turning lanes, drainage infrastructure, traffic signals and street lighting.
There will be disruptions to traffic flow as part of these works from January through to August.
Mayor of Latrobe City Council, Councillor Darren Howe, said he appreciates the community's patience while these important safety upgrades are completed.
"Upgrades to the intersection are part of Council's 2023/24 Budget, with $4.9 million allocated to the works. Council appreciates the community's desire and advocacy for this intersection and the widening of Marshalls Road to be complete," said the Mayor.
"The upgrades will improve safety and traffic flow, as part of our growing City. We apologise for any inconvenience this roadwork may cause the community.