The project works were suspended in February last year after the expiry of the original Incorporated Document to build the 12.5km section of the project.
A new contractor to develop the remaining project is expected to be appointed by the provincial government soon.
Victoria Minister for Roads and Road Safety Luke Donnellan said: “We’re building a better Western Highway to support communities and the regional economy across Western Victoria.
“Drivers are seeing the benefits of 55km of the Western Highway that’s already been duplicated and we’re pleased to restart works on the section to Ararat.”
The works will include the duplication of the highway to two lanes in each direction, building of additional turning lanes, a new bridge over the railway line, as well as two additional bridges over the Hopkins River and an interchange at Hillside Road.
The Western Highway serves as a main road link between Melbourne and Adelaide.
Member for Western Victoria Jaala Pulford said: “The construction of the 12.5km section between Buangor and Ararat is the next step in delivering the safer, more efficient connection between Ballarat and Stawell that our local community needs.”
Construction works are expected to be completed in two years and form part of the A$672m ($527m) Australian and Victorian government-funded project.