Recent assessments by the Victorian Department of Transport and Planning found pedestrian usage at the Northern Hwy crossing and its distance from a school made it ineligible for funding.
The crossing was installed just north of McSwain Rd last year to address safety concerns, with Australian Christian College nearby.
Campaspe Shire Council made the announcement following consultation with the department, which will see crossing infrastructure withdrawn.
Initially, the school crossing was replaced with temporary pedestrian-operated lights, and an agreement was reached with the department for the lights to remain until August.
The agreement was later extended to the end of this school year.
Director of infrastructure Kate Lemon said the intersection of Northern Hwy, McSwain Rd and Rose St would see more permanent works in the future.
“While these temporary signals are being removed, future upgrades as part of the Echuca West Precinct Structure Plan will deliver improved crossing facilities for our growing community,” she said.
“Council remains committed to ensuring safe and accessible pedestrian connections across Echuca.”
The Echuca West PSP has 5000 lots earmarked for development, which is expected to make Rose St a busy thoroughfare.
In September, a community petition to install a footpath on the street was endorsed by the council, along with plans to upgrade bus stops near the college.
Once the temporary signals on the Northern Hwy are removed, the crossing point will remain available to pedestrians.
Footpath connections on either side of the highway, the central refuge median and steel fencing will remain in place.