The scheme, which was awarded £645,000 from the Transforming Cities Fund, will involve improvements to the stretch of Follingsby Lane which falls within South Tyneside boundaries.
The route runs from Gateshead, through Boldon and into Sunderland.
The safety works, which are due to begin in the new year, will see the South Tyneside section upgraded to a two-lane carriageway where possible, and the road will be resurfaced.
Traffic calming measures will also be installed, as well as a reduction in the speed limit being introduced.
Coun Mark Walsh, lead member for housing and transport, said: “We know that the condition of our highways and road safety are important to local people and this scheme will deliver a significant improvement in both along this lane.
“The work will get underway early in the new year and we’ve already been in touch with residents and businesses in the area to ensure they are aware of the works.
“The project will be carried out in phases so that access to properties can be maintained.”
The work will be carried out by the council’s in-house construction team.
The scheme was awarded £645,000 from tranche 1 of the Transforming Cities Fund. The fund focuses on cycling improvements, intelligent transport solutions and bus improvements at congestion points across the network.