The major intersection will be equipped with advance directional signs, intersection direction signs and improved line marking to help drivers negotiate the three roundabouts.

Eastern Metropolitan MP Shaun Leane said the $41,000 project was part of a $620,000 upgrade of roads in Melbourne's outer east. He said the Government was acting on community concerns.

"The new advance signage will allow drivers to choose which direction they are planning to take well in advance.

"The improved line marking will include new through and right-turn arrows to ensure that drivers remain in the correct lanes to get to their destination."

In the five years to December 30, 2007, there were 11 casualty crashes within 150metres of the intersection.

"Once completed, these improvement works will increase safety and reduce the number of crashes for the many vehicles travelling through this intersection each day," Mr Leane said.

Other intersections in the outer east to benefit from the funding include Ringwood-Warrandyte and Milne roads in Park Orchards (new intersection signals) and Kelletts Road and Taylors Lane in Rowville (safety improvements).

The funding is part of the Government's Safer Road Infrastructure Program.