Australia is set to open the 23km, two-lane, divided highway between Burrumbeet to Trawalla in Victoria later this week.

Earlier, John Holland was awarded a contract valued for duplication of Burrumbeet to Trawalla Western Highway.

Connecting Ballarat with surrounding regional towns, the highway upgrade will also ensure economic growth and development in the years ahead.

For the Western Highway duplication from Ballarat and Stawell, the Australian and Victorian Governments have granted $501.3m and $161m respectively.

"This upgraded section means people driving from Ballarat to Beaufort can take advantage of continuous overtaking opportunities and have peace of mind with safer intersections."

Deputy prime minister and minister for infrastructure and regional development Warren Truss said the opening is a key milestone in the ongoing duplication of the Western Highway from Ballarat and Stawell.

"This upgraded section of the highway means people driving from Ballarat to Beaufort can take advantage of continuous overtaking opportunities and have peace of mind with safer intersections," Truss said.

Upon opening, some works are expected to continue from Burrumbeet to Trawalla.

Prior to opening, large beams will be lifted into place to form a major interchange and highway overpass at Eurambeen, between Beaufort and Buangor.

Federal member for Wannon Dan Tehan said: "Construction is also well underway on 15km west of Beaufort while major earthworks will begin on a 6km bypass of Buangor in March."

The continuing works are expected to improve on and off ramps at Remembrance Drive and reconnect the Avenue of Honour.