The work at the intersection of Princes St and South Rd, and connecting with Maitland St, is subject to confirmation by the Dunedin City Council.
It was identified by the council as a priority in 2023, when a councillor workshop was held about a project known as the Princes Street Connection.
A roundabout would enable safe and efficient vehicle turns, a safe crossing point for pedestrians and a safe connection to the Oval shared path and cycling route along South Rd, the council said at the time.
The broader project’s aims are to improve road safety, bus reliability and efficiency, and pedestrian safety and access for people who walk, cycle or who have disabilities.
The three-year programme will start at the southern end of Princes St and finish at Moray Pl.
It is understood construction could start at the end of 2026 for the first year of work and the South Rd roundabout is within scope for that.
Public consultation is also planned for proposed changes to bus stops.
The council said in 2023 a priority was to have one new signalised intersection in Princes St.
It could be at the intersection with Andersons Bay Rd, Jervois St or Carroll St, councillors were told.
Asked for an update on the project, the council said yesterday it was working to complete detailed designs and costs for proposed changes in Princes St.
"Subject to councillor approval as part of this year’s annual plan process, we expect to deliver improvements beginning in the 2026/27 financial year," transport group manager Jeanine Benson said.
The project is part of the Shaping Future Dunedin Transport programme and will be funded by the council and NZ Transport Agency Waka Kotahi.
Ms Benson said the council would be in a position to release more detailed information publicly in the coming weeks.
