New traffic lights at the Corringham Road/Thorndike Way junction will increase safety and unlock development in the area.
Lincolnshire County Council and West Lindsey District Council are working together on the installation of the new signals, which are expected to cost in the region of £1.5m.
The project will be jointly funded by Lincolnshire County Council, West Lindsey District Council and the Greater Lincolnshire LEP
Cllr. Richard Davies, Executive Member for Highways at Lincolnshire County Council, said:
"We've made various improvements at this important junction over the years, which have helped reduce the number of serious collisions.
"These additional improvements will help increase safety even further, and ensure the junction is able to cope with the extra traffic generated by any new housing in the surrounding area over the coming years.
"The local community has been calling for either traffic lights or a roundabout here for some time, and I'm pleased that we've been able to make it happen."
Minister of State for Local Growth, the Rt. Hon. Jake Berry MP, said:
“This Government is committed to boosting economic growth across the Midlands Engine and throughout the UK as we leave the EU on October 31.
“Supporting crucial infrastructure improvements is just one of the ways the Government continues to help local communities thrive. The Local Growth Fund’s £3.9 million investment in Gainsborough will help to reinforce its reputation as a vibrant place to live and work.”
Leader of West Lindsey District Council, Cllr. Giles McNeill is delighted to be working with Lincolnshire County Council and Greater Lincolnshire LEP to invest in this improvement work. He said
“Listening to residents on this issue, we were aware that further work was needed to make sure the area was safe. Not only will this ensure the continued improvement of safety in the area, it also means that the junction can cope with planned population growth in Gainsborough.”
Pat Doody, a Board Director at the Greater Lincolnshire LEP, said: “We are delighted to be supporting this crucial piece of infrastructure as part of the LEP's overall growth-related investment in Gainsborough.
“The scheme forms a part of a wider £3.9m programme of activity across the town centre which includes new housing provision, transport modelling and enabling a new cinema complex.”
The new junction is currently being designed, with work on the improvements expected to begin in 2020.