The $8 million upgrade will improve the intersection that leads into the Dubbo Regional Livestock Markets.

Works will include realignment and widening of the road, creation of dedicated turning and deceleration lanes, widening of the median islands and new signals at a level crossing intersecting Boothenba Road, near the Newell Highway.

Numerous accidents have been recorded at the intersection.

The upgrade was promised in 2019 and Dubbo MP Dugald Saunders said while a lot has happened between then and now, it was great to see it finally coming together.

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"Hundreds of thousands of sheep and cattle are transported to the saleyards every year, and this project will enable a realignment and widening of the road, as well as the creation of dedicated turning and deceleration lanes and other improvements," Mr Saunders said.

The NSW government contributed $6 million towards the Boothenba Road project, while the federal government added $2 million.

Member for Parkes Mark Coulton said the two levels of government were working together to deliver the much-needed upgrade to a key freight route.

"Upgrading this intersection will significantly improve safety for all road users and increase productivity gains for heavy vehicles accessing the saleyards," Mr Coulton said.

"Investing in high-priority infrastructure projects like this supports local workers, households and businesses, which means more cash flowing through the local community at a time when it's needed most."

Dubbo mayor Stephen Lawrence said the upgrades would significantly increase road safety.

"Dubbo Regional Council is proud to deliver this significant project to address historic community concerns around safety at the intersection of Boothenba Road and the Dubbo Regional Livestock Markets," Cr Lawrence said.

"I'd like to thank the NSW government and the Australian government for the funding to make this project a reality."

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