Tenders are being sought for the first projects that form the Invermay Traffic Master Plan.
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Construction is expected to begin early next year, with upgrading the Goderich and Gleadow street intersection to allow left and right turns and installing traffic signals the first step.
The Goderich and Forster street intersection will have an additional right-turn lane installed as part of the plan.
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Infrastructure Minister Michael Ferguson said the "high priority" projects were essential.
"This work will ensure we are able to meet future increased demand along the Launceston north south corridor and complement road changes being managed by City of Launceston as part of the Invermay Traffic Master Plan," he said.
The state government is also funding the Mowbray Connector upgrades, which it says is progressing well. The project is due for completion in April 2020.
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