Hudson said the council had explored several options, including traffic lights, for the new intersection, but the proposal presented to the council's service delivery committee last week was the most beneficial for the community.
"The option we are proposing will significantly improve traffic safety, requires less land and would mean less delays and risks for pedestrians and cyclists crossing the roads."
Hudson said the next step was for the council to seek feedback on the design and explore other design elements such as CCTV and loss of mature trees, before looking at procuring land.
"We need to look at more detailed aspects such as how we can create safe, attractive and user-friendly underpasses."
All things going well, construction should start in April and take around eight months.
Work on the roundabout will be coordinated with an upgrade of Cambridge Rd, set to take place next year. It includes the installation of walking and cycling tracks, stormwater drains and other utilities such as power, water and telecommunications.