New Zealand Transport Agency is to fully fund a $4.5 million upgrade to the Saddle Road.
The project, to improve resilience and safety on the road, will be led by Tararua District Council that owns around 80 per cent of the route, says Delaney Myers, transport agency planning and investment manager.
He said the council had established the "scope of the project" and construction tenders would be called after a detailed design is completed.
Manawatu District Council and Palmerston North City Council also partner the project, which is expected to be completed in the upcoming financial year.
Blair King, Tararua District Council chief executive, is pleased with the partnership and the "future benefits" the relationship would bring.