Regional Roads Victoria has confirmed it assessing a proposed speed limit reduction at Sutton Grange.
Earlier this year, residents of the area petitioned Mount Alexander Shire to cut the speed limit on the Bendigo-Sutton Grange Road from 100 km/h to 80 km/h.
The council supported an amended form of this proposal and in September wrote to Regional Roads Victoria to advocate for the reduction.
"Council has investigated the request and acknowledges the safety concerns raised by community members," a Mount Alexander Shire spokesperson said.
Read more: Calls to cut Sutton Grange speed limit
The City of Greater Bendigo and Victoria Police have also formally supported the move.
The proposed reduced speed area starts near Ontario Lodge Lane and ends just past the Faraday-Sutton Grange Road intersection.
Now Mount Alexander Shire and the roads authority are assessing the proposal.
"We're currently reviewing a speed limit proposal on Bendigo-Sutton Grange Road and working through the details with local councils with aims to have an outcome by early next year," Regional Roads Victoria acting regional director Barry Green said.
The assessment will consider such factors as the number of access points along the route, the nature of the road environment, adjacent speed zones, road user types, consistency with similar locations and the historical safety records.
Safety audits and consultation with stakeholders is undertaken when there is to be a permanent speed limit change.