And the New Zealand Transport Agency Waka Kotahi has this week verified they have a basis.
The safety improvement is planned on State Highway 1 at the intersection with South Town Belt.
An NZTA spokesperson said plans were at the design stage.
However, funding was not yet available for construction.
"It will need to be considered alongside other projects for the next National Land Transport Programme," the spokesperson said.
Work on the programme is due to take place from 2027 to 2030.
"Because it is only at design stage, detailed costings will still need to be developed."
Rakaia Community Association chair Neil Pluck said he had heard the rumour.
However, he believed the roundabout was not needed, as the highway speed limit was now slower.
The speed limit dropped from 70km/h to 50km/h in May last year.
The intersection works well with the slower speed, he said.
"I would not think a roundabout was necessary, it would not change much," Pluck said.
His business Pluck’s Engineering is located at the intersection.
