The Mellish Road roundabout is a notorious pinch point as traffic enters Walsall town centre from Lichfield Road.
Under the plans, two lanes will be created for inbound traffic on Lichfield Street adjacent to the Arboretum and a new bus lay-by will be put in to reduce delays for outgoing traffic.
The pelican crossing on Lichfield Street will be moved closer to the roundabout and upgraded for greater public safety. The central pedestrian crossing on Lichfield Street will also be upgraded.
Butts Road will become one-way in an easterly direction between the junctions of Westbourne Street/The Butts/Butts Road and Butts Road/Lichfield Street to prevent vehicles from making U-turns from Lichfield Street into Butts Road.
Making Butts Road one way will create space for a new pedestrian crossing which will improve pedestrian safety and reduce delays, Walsall Council said. The one-way operation also creates the space for new parking bays on Butts Road.
Adrian Andrew, deputy leader of Walsall Council, said: “We are responding to residents and commuters concerns about the congestion driving into Walsall.
"An effective road network is vital to any borough, increasing capacity and reducing delays will have a huge impact for residents and businesses on this important thoroughfare.”
The work also includes upgrading crossing facilities on Lichfield Road and Buchanan Avenue.
It is not yet known when the work will take place.