Parliamentary Secretary for the Hunter Catherine Cusack said the works were the second stage of improvements for the heavily used roundabout.

"The NSW Government is investing $4.9 million this financial year to improve traffic flow and reduce travel times on the highway," Ms Cusack said.

"The New England Highway is a vital thoroughfare for the Hunter region, with 40,000 motorists passing through this intersection every day.

"The first stage of improvements in October has reduced queueing during peak periods, and we're excited to be moving forward to the next stage of works which is expected to see westbound delay times reduced by about 80 per cent.

"This project won't just cut congestion, it will also provide work for about 10 local contractors and suppliers, supporting about 90 local jobs in total."

The second stage will start on Sunday and will involve installing traffic lights on Church Street, modifying the roundabout layout and widening Cessnock Road.

The traffic lights will be triggered by queue detectors, and operate during busy times to help manage traffic flows.

The improvements will also involve providing two through lanes from Church Street to Cessnock Road, two right-turn lanes into Cessnock Road for eastbound highway traffic as well as extending the dual southbound lanes on Cessnock Road to Fishery Creek Bridge.

Work will be carried out between 7pm and 5am from Sunday to Thursday, and is expected to take five months to complete - weather permitting.

Lane closures and a 40km/h speed limit will be in place during work hours for the safety of workers and road users, with motorists advised to drive to the conditions and to follow the directions of signs and traffic control.

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