Waterloo Roundabout was previously identified in TfL’s evidence-led Safer Junctions programme earlier this year as one of 73 junctions in the capital with the worst safety record for pedestrians, cyclists and motorcyclists.
The transformational works are expected to improve the overall safety of public transport users, cyclists and pedestrians within the region.
The development will see the introduction of new segregated cycle lanes featuring cycle-specific traffic lights, wider footpaths and vastly improved public spaces.
Additionally, the junction itself will be completely redesigned as part of the initiative.
London Walking and Cycling Commissioner Will Norman said: “Waterloo roundabout is currently one of the most dangerous junctions in London, so it’s great news that we can progress with our plans to improve it.
“We’re going to transform this intimidating junction, making it safer and more pleasant for all those who use the area.
“By creating people-friendly streets, we can encourage many more Londoners to walk, cycle and use public transport, improving our health and air quality.”
TfL and Lambeth Council also plan to create a new large public square by closing the south-west corner of the roundabout and return to a two-way traffic system around the Waterloo Imax cinema.
The bus station on Waterloo Road will also be renovated under the project.