Changes to bus stops are also expected and traffic lights could be installed on the route into the city centre.
Possible changes were outlined to Dunedin city councillors at a workshop behind closed doors in October last year.
Councillors are unable to make decisions at workshops and a detailed proposal has yet to take shape.
However, public consultation on short-term proposals is expected to happen early this year and construction is due to start in the 2024-25 financial year.
A roundabout where Princes St meets South Rd has been identified as a priority.
The October presentation to the Dunedin City Council said it would enable safe and efficient vehicle turns, safe crossing points for pedestrians and a safe connection to the Oval shared path.
Other Princes St priorities would be one new signalised intersection — at Andersons Bay Rd, Jervois St or Carroll St — and improvements to bus stops and crossing points.
Traffic lights could provide safe options for vehicles to turn, safe crossing points for pedestrians and "enable us to remove turns from nearby minor intersections, removing conflict", it was stated.
At the five-way Stafford St intersection, it was suggested left turns from Manse St and right turns from Princes St into Liverpool and Water Sts might be banned.
A "future option" was floated of making Stafford St one-way up the hill.
Right-turn bans were also suggested at Rattray St.
Princes St is well used by people travelling into the city from the southwest, which is where 65% of daily car trips to central Dunedin originate.
It also forms Dunedin’s main bus corridor from the south and is a popular route for cyclists and pedestrians, the council has said previously.
Problems identified included buses being delayed at intersections, a poor crash record, and poor provision for people walking, cycling and who have disabilities.
The transport budget has been estimated at $6.4 million, but a more precise figure is expected to be known this year.
One theme from consultation so far has been "chaos at the Oval".
Consultation identified lack of parking at the Oval during events as a major safety concern.
Council staff had also identified a "desire for a sealed area" to better cater for events.
However, new parking areas were included on a list of items "currently out of scope".
As things stood, funding had not been allocated to this.
Consultation also identified lack of safe cycling facilities as a major concern.
