A temporary roundabout, made of traffic cones, was placed there in the meantime.
He said the work was being managed by Rotorua District Council for the New Zealand Transport Agency.
Mr Thompson hoped the lights would be repaired by this morning.
"If everything runs to expectations and if no unforeseen problems surface, then it is possible that the traffic signals will be operational again before today's peak morning traffic period," he said.
"We acknowledge the temporary traffic management arrangement can be frustrating as it is not as efficient as traffic signals and it does slow traffic down. However, the work needs to be done now and when the upgrade is complete the risk of future outages ... should be substantially reduced."
The council appreciated the patience shown by most motorists, he said.