A well-known hot spot for accidents and daily near misses, the intersection of Government and Raymond Terrace Roads, received the funding in the state government's recently released budget.

It comes years after the community and local council have advocated the state government for action to improve conditions.

Member of the Legislative Council Taylor Martin said the 2019-20 state budget provides funding for the planning and design of new access and intersection upgrades.

"This funding will provide traffic lights and improve safety at the Government Road and Raymond Terrace Road intersection, within the new Thornton North urban release area," he said.

"It will help to accelerate the delivery of 1705 homes by providing better transport connections for existing and future residents of the family neighbourhood."

The Mercury has previously reported multiple stories over the years voicing the concern of politicians residents, pedestrian and motorists over the stretch.

In 2016, resident Leanne Noble told the Mercury that she feared lives could be lost on the congested intersection.

"There is no turning lane so coming home when I'm sitting there trying to turn right, cars fly around the side of you and you worry you're going to get rear ended," she said.

"It's a bad road and with the area expanding, the intersection just isn't sufficient for the volume of traffic that is now using it.

"I hope it doesn't take a fatality to get something done to make this stretch of road safer with a roundabout, turning lanes or lights."

The investment is part of the State Government's commitment in the Hunter Regional Plan 2036 to deliver housing in the Maitland corridor.