Currently, it is a staggered cross intersection, making it difficult, particularly for heavy vehicles, to turn.
After beginning works earlier this week, the upgrade will include straightening the cross intersection, installing traffic lights and creating dedicated turning lanes.
This is set to increase road safety and improve efficiency for all road users.
Approximately 17,000 vehicles a day use this intersection and 14 per cent of those are heavy vehicles.
The State and Federal governments have invested $20 million to improve the Murray Valley Highway between Echuca and Yarrawonga which includes these works.
Of that money, $5 million will be used for this project.
Works will take place between 7.30am and 5pm weekdays with the possibility of some night and weekend works.
During construction speed limits, traffic management, lane closures and clearly marked detours will be in place.
Regional Roads Victoria advises people to plan ahead and give themselves an extra five minutes travel time if you do have to travel through the constuction area.
The upgrade is set to be complete by the end of June this year.