The works will take place on a stretch of road between Chapple Street roundabout and Jack in the Box Creek crossing.

The fatality that claimed the life of a 57-year-old truck driver happened at the intersection of Thomas Mitchell Drive and Docking Street.

Federal assistant minister for infrastructure and regional development Jamie Briggs made the funding announcement alongside Indi Liberal candidate Sophie Mirabella and Wodonga mayor Rod Wangman.

Cr Wangman said Wodonga Council would contribute to the upgrade with the total project to cost an estimated $2.2 million.

“One crash is one too many and over a four-year period this stretch the site of three significant crashes, including, sadly, one fatal," Cr Wangman said.

"This has to be about increasing the safety levels and reducing fatalities.

"Otherwise the application for black spot funding would have been pointless."

The section of road will be upgraded with a central median strip, right turn lanes, kerbing, pavement, lighting, bus stop and pedestrian crossing.

The council will call for tenders and work could start before the end of the year.

An estimated 8700 drivers use Thomas Mitchell Drive daily.

The Wodonga announcement from Mr Briggs was the first made in Victoria under the federal government's commitment of $500 million to the black spot program released in last year's budget.

It follows the recent $10 million federal funding boost for central Wodonga upgrades.

"Sophie is constantly at me and many of my ministerial colleagues about ensuring Indi continues to get federal government support because it is such a growth area," Mr Briggs said.

Mrs Mirabella said road upgrades were a major issue for Indi.

"To listen to the local concerns and needs and to actually put the hard dollars up is terrific," she said.

"If we want to keep people here, young families here, make it safer for older Australians to live here we need continual infrastructure investment."

The project was recommended by a panel of independent road safety experts.