Work is expected to start in October to improve safety at the intersection of Houston Mitchell Drive and the Pacific Highway.
The $2.9 million state government project will deliver a wider and extended left-hand turn deceleration lane into Houston Mitchell Drive from the north and the addition of a left-hand turn acceleration lane out of Houston Mitchell Drive for traffic heading south on the highway.
There will also be vehicle-activated signs.
A warning signal will alert motorists travelling south along the highway to be cautious when a vehicle is turning out of Houston Mitchell Drive.
Minister for Regional Transport and Roads Paul Toole said the plans and designs were being finalised with work expected to start in October 2021.
"I know this area has had a number of near-misses and I know that unfortunately there was a fatality here earlier in the year," Mr Toole said.
"Governments are always trying to look at ways of making our roads safer and this [project] is going to go a long way to actually improving this intersection for those locals, those visitors and those that use it from time to time."
The highway speed limit was reduced in March.
He said these improvements could be delivered in the short term.
Residents have rallied for action at the highway intersection hotspot with Peter Rodgers from Bonny Hills leading the charge.
Port Macquarie MP Leslie Williams said the $2.9 million safety improvements would make a real difference in terms of motorists' visibility.
"What we needed in the first instance was to address some of the safety concerns and issues at this intersection," she said.
"We know there are some improvements we can make to improve safety including increasing the length of the slip lane from the north and creating a new slip lane heading south."
Mrs Williams added that motorists needed to assess the risk and drive to the conditions.
Growth in the Bonny Hills and Lake Cathie area has increased traffic at the Houston Mitchell Drive/Pacific Highway intersection.
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