Work is expected to start early next year on upgrading the intersection of Princes Highway and Box Road, Sylvania Heights.
Following community consultation, Transport for NSW will proceed with works proposed early this year.
Miranda MP Eleni Petinos said the upgrade would reduce delays and improve travel time reliability for bus customers and motorists, while improving safety and pedestrian access.
"Box Road will be widened on the east and west approaches to the intersection to allow for new dedicated right and left turn lanes.
"The improvements will alleviate congestion, keeping traffic flowing for motorists and improving access to the highway for bus services, including route 970.
"Work is expected to start around early 2021, subject to the outcomes of the environmental assessment and appointment of a contractor."