The intersection of Bridge Inn Road and Sackville Street in Mernda is set to be upgraded.
Whittlesea council will upgrade the intersection in a bid to improve safety for motorists and pedestrians.
The work will include the installation of traffics lights, asphalt upgrade, the realignment of the footpath and new street lighting.
The works are scheduled to start by early November and will take about three months to complete.
The majority of the works will be undertaken during the December school holidays to minimise disruption, council said.
During construction, Bridge Inn Road will remain open. However, there will be no entry and exit to/from Sackville Street via Bridge Inn Road. A local detour will be provided via Heddle Street and Wellington Street.