Construction on a new roundabout at the intersection of Jones Baseline and Highway 7 just east of Guelph is expected to start this summer.
A spokesperson for the Ministry of Transportation said the roundabout is expected to be completed by late spring 2017.
"The work also includes culvert replacement, construction of storm sewers, and lighting. A contract will be advertised in the next few weeks, with construction expected to begin in summer 2016," said Liane Fisher, communications coordinator for the Ministry of Transportation's West Region.
A building that used to house Rac's Auto Care on the northeast side of the intersection has now been demolished and Fisher said utility relocations are currently underway to prepare the site for construction.
The Ministry of Transportation first proposed a roundabout at the intersection, which will include a reduction in speed limits along that stretch, in 2011.
Steep grades from Jones Baseline in both directions and a sharp curve on the Highway 7 portion have made the intersection an awkward and occasionally dangerous one throughout the years.
A flashing yellow light installed in 2011 is currently the only safety feature.
A 2010 report said about 9,000 vehicles travelled that section of Highway 7 every day.