The traffic lights will be installed at the intersection with Hassett St and MacIntosh St, as well as the Fitzjohn St intersection.
Greater Shepparton City Council accepted the tender by Congupna business Apex Earthworks, which will include widening the road near the new Shepparton Art Museum.
Mayor Seema Abdullah said works would start in October and were expected to be finished by January.
She said the upgrades would improve safety along the busy road.
“There will be safe access to Wyndham St and near the lake,” she said.
“The road widening will be toward the Victoria Park Lake, which will provide easier parking and ease traffic flow.
“We're hoping to have this ready to coincide with SAM opening, and allow better access to SAM, the lake and caravan park.
“By awarding this to a local contractor it will show good prospects for the economy and jobs."
At the meeting on Tuesday night, September 15, Cr Bruce Giovanetti said council was aiming to receive state government funding for the project.
Cr Kim O'Keeffe said council had chosen not only an experienced local contractor but also the lowest priced tender.
Cr Abdullah said council was taking advice from an investigation that was conducted by Regional Roads Victoria.
● To see the fly-through video of the upgrades, visit: https://www.youtube.com/watch?v=Ep223Js-LHc
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