VicRoads regional director for western Victoria Lance Midgley said that preliminary works have started on the new roundabout at the intersection of Barkly Street and Alfred Street.

"VicRoads began the demolition of three properties in Barkly Street, the first stage of construction of the roundabout on the eastern approach to Ararat. Work is currently proceeding removing floor slabs, footings and any remaining debris,'' Mr Midgley said.

"VicRoads is working closely with the Ararat Rural City Council to finalise the detailed design of the new roundabout.

"Once constructed the roundabout will improve safety for the many motorists who use this section of the Western Highway through Ararat.''

Mr Midgley said the intersection of Barkly Street and Alfred Street has a history of casualty crashes.

"We propose to realign the Western Highway, between Heath Street and west of Alfred Street and construct a roundabout at the Barkly Street/Alfred Street site.

"This will not only increase safety at this site, but will also improve traffic flow along the highway,'' Mr Midgley said.

Ararat Rural City Mayor Cr Fay Hull applauded the safety upgrade to the intersection.

"I applaud the effective working relationship between Council and VicRoads and acknowledge the improved safety measure for all road users,'' she said.

Ararat Rural City Council CEO Steve Chapple said it was an important step to improving road safety for the community, freight transport and visitors.

"While this project does not provide a grade separation or overpass between the Western Highway and the railway line, Council is currently reviewing its Municipal Strategic Statement to plan for an appropriate truck by-pass of Ararat in the future,'' he said.

Construction of the roundabout is expected to commence in February next year.

Mr Midgley said a traffic management plan will be in place to allow traffic to continue to move through the intersection during the construction phase.

The three properties demolished were at 391, 393 and 395 Barkly Street.