Improvements for pedestrians and cyclists include a shared pedestrian/cycleway, new bus stops and two new bus shelters.
The project adds to the upgraded section of Omokoroa Road that the council completed in 2018.
New Zealand Transport Agency's acting director of regional relationships, Ross I'Anson, said the project will ensure Ōmōkoroa Road is "fit for purpose".
"Omokoroa is a busy urban community and it's important the local infrastructure is safe for the growing number of people using it," he said.
"It's good to see the project includes public transport improvements and amenities for pedestrians and cyclists."
The council will consult with landowners and other stakeholders before finalising the draft design and going to tender in early 2020.
They expect the project to be delivered in two stages, with the upgrade completed by 2021.
Some disruption to traffic can be expected while construction is ongoing and traffic management will be in place.