The Federal government will put $4 million towards upgrading the intersection, which has been called one of the most dangerous intersections in Horsham.

"It's an accident waiting to happen," Horsham Rural City mayor Robyn Gulline said.

"We're very grateful to have the funding, before there's an accident.

"Trying to turn off the Western Highway down Golf Course Road and down the Henty Highway, or turning from Golf Course Road to head east along the Western Highway is just an absolute nightmare. It will certainly make that a much safer intersection."

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Cr Gulline said the announcement was the result of years of advocacy.

"It's the result of many, many years of advocacy from Council and a whole range of other groups. It's a really important safety initiative for our community," Cr Gulline said.

"Not to mention the productivity and efficiencies when people aren't sitting and waiting forever to get across the intersection. It will be a most welcome addition by all members of the community."

The funding came as part of the Federal government's Roads of Strategic Importance initiative and was announced by Deputy Prime Minister Michael McCormack and Member for Mallee Anne Webster.

Mr McCormack said the government has released $13.88 million in the 2021-22 budget to allow Victoria to "kick off" construction on four vital projects funded as part of the ROSI initiative.

"This funding will deliver upgrades to the Horsham Junction, and Western Highway intersections with Nhill-Jeparit Road at Nhill and Seaby Street in Stawell," the Deputy Prime Minister said.

"Not only will these upgrades address the pinch points in the corridor but they will support local businesses and local jobs," he said.

"The Australian Government is committed to upgrading this vital freight link for many major agriculture industries, which is why I am excited to see works will soon be underway," Dr Webster said.

"Road safety is vitally important for our communities. It is fantastic to announce that this years budget has allocated $4 million to the Western Hwy, Henty Hwy and Golf Course road intersection, to significantly improve this area."

According to its mission statement, the ROSI initiative will support upgrades to 26 key freight corridors across Australia, including the stretch of the Western Highway between Stawell and the South Australian border.

The Federal government will contribute a total of $60 to the upgrades to the corridor, which are projected to cost $75 million and will be completed over an unspecified timeline.

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