Bunbury's state and federal politicians have welcomed funding for what they have called a "critical" piece of infrastructure.
The March 29 pre-election federal budget committed $16 million towards intersection on Forrest Highway.
Federal member for Forrest Nola Marino said she was pleased that the investment she was able to secure from the Coalition meant the Vittoria Road intersection would get an upgrade.
"The project is a critical piece of infrastructure for the South West, and the intersection upgrade will make road users in Bunbury and surrounds safer when driving," she said.
Bunbury MLA Don Punch said the funds would be used to construct a new intersection on Forrest Highway, approximately 200 metres west of the existing Vittoria Road intersection, and new local road connection for Glen Iris residents.
He said he had been advocating for works to occur at the intersection since he was first elected in 2017.
"The State Government has recognised the traffic issues in Glen Iris and has initiated multiple projects to improve the functioning of that road network," Mr Punch said.
"The Bunbury Outer Ring when complete, will reduce truck movements in the area and improve overall road safety, and the roundabout at the intersection with South Western Highway will improve traffic flow at the southern end of Vittoria Road, so the proposed new intersection on Forrest Highway is essentially the last piece in the puzzle of road needs for Glen Iris.
