The remaining funds for the $60 million project will come from the state government.

Construction is set to begin in 2023.

It comes after Port Macquarie MP Leslie Williams announced safety improvements further north at Houston Mitchell Drive last week.

Member for Lyne Dr David Gillespie said he wrote to prime minister Scott Morrison and deputy prime minister Michael McCormack earlier this year to seek funding towards upgrades at five key intersections between Newcastle and Port Macquarie.

"Italia Road, Medowie Road and Bucketts Way need a new grade separated interchange, as does Failford Road, Harrington and Houston Mitchell Drive. The Oxley Highway interchange also needs further improvements. These upgrades will make these intersections safer and more efficient," Dr Gillespie said.

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The federal government has only received plans and costs from Transport for NSW for the Harrington intersection.

That's why Dr Gillespie has urged the state government to fast track the design and planning process for the other intersections so construction can be brought forward.

"Earlier in the Pacific Highway upgrading program, particularly between Newcastle and Port Macquarie, the focus was to transform as much of the highway to four lanes as possible and to come back and do the major intersection upgrades at a later time," Dr Gillespie said.

"This policy was altered midway through the program and consequently all major intersections north of Port Macquarie have grade-separated interchanges.

"Today's announcement proves that the federal government is ready to help fund these important projects. We now need Transport for NSW to get on and make sure the remaining overpass projects are shovel-ready."

Harrington-Crowdy Head Chamber of Commerce president Mike Parsons labelled the project 'a godsend'.

The chamber, support groups, residents and motorists have worked together for many years to lobby the governments about the importance of the overpass.

"Not only will it save lives but it will take the anxiety and stress out of the intersection for so many people, including me," Mr Parsons said.

"I use it four or five times a day and it can be horrific. You put your heart in your mouth sometimes, especially if you have to cross to Coopernook or right up the highway.

"I can't wait for it to become a reality."

Talks escalated following the death of a 74-year-old woman in a collision at the intersection on February 15.

"It was another opportunity, as tragic as it was, to promote the need for the overpass upgrade and prevent further fatalities," Mr Parsons said.

He said Dr Gillespie has taken a proactive approach to all forthcoming intersection upgrades.

The intersection is particularly busy during peak holiday periods when traffic can bank up along the highway and Harrington Road.

"It's going to be a less stressful journey for people that live here and visitors who are not familiar with the intersections," Mr Parsons said.

"There's also a lot of insecurity in terms of people not understanding there's a slip lane there."

At Houston Mitchell Drive, work is expected to start in October to improve safety at the intersection with 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.

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