A 10-kilometre stretch of road from Spring Gully to Sedgwick will have its speed limit reduced to 80 km/h.
Last year, the City of Greater Bendigo applied to have the speed limit on the section of Mandurang Road and Sedgwick Road lowered from 100 km/h, because of its crash history, road alignment, and growing development in the area.
"We have now received approval from the Department of Transport to proceed with the speed limit reduction," City of Greater Bendigo engineering manager Brett Martini said.
Mr Martini said the new speed limit would come into force once the new signs were erected, which was expected to take place in the next two weeks.
The section of road starts near Francliff Avenue in Spring Gully and ends near Springs Road.
Members of the local cycling community last year welcomed the council's effort to reduce the speed limit in the area.
Edward Barkla, from the Bendigo Bicycling Network, said the approval was good news.
"I think it's a great progressive thing, for a number of reasons," Mr Barkla said.
He said the area saw a lot of wildlife, experienced high volumes of traffic, and had a growing population.
It was a "delight" for cyclists, Mr Barkla said, but made the road safer for everyone.
He said it was a credit to the council and others involved in having the speed limit changed.
The green light to adjust the limit on this section of road came after an application to reduce the speed limit along part of the Bendigo-Sutton Grange Road from 100 km/h to 80 km/h was approved.
That was sparked by a petition from Sutton Grange residents.
City of Greater Bendigo has also received money under the federal Black Spot funding program for safety improvements on Sedgwick Road between Nankervis Road and Storys Road.
"The works will include road widening, shoulder sealing and installation of road barriers and will take place later this year," Mr Martini said.