Commencing in March, the $1.4 million works will see the construction of a new roundabout, instillation of a new kerb and channel, a new pedestrian crossing near Catherine McCauly College and the removal of the Barkly Street slip lane to make way for new parkland.

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City of Greater Bendigo engineering manager Ian McLauchlan said the project is in response to a number of crashes and the need to protect the high number of school students and other pedestrians who use the area.

"This is an important project that will help reduce the speed of vehicles around the school and provide greater pedestrian safety along Barkly and Bancroft Streets," he said.

"It will also result in new bus bays in Valentine Street and a new school crossing and more formalised parking in Barkly Street."

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The project will also include intersection upgrades at Valentine Street and Barkly Terrace West, and Bancroft Street and Rosalind Street.

These works are part of the Safe Travel in Local Streets program, funded by TAC and the state government.

The project is expected to be completed in October.

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