The council will contribute almost $2.5 million towards the project, which will see the entire road length sealed, a "channelised right-hand turn" at the highway intersection, and LED speed limit signs that light up for approaching vehicles.

The council's project also called for wire safety rope "in selected areas along the rural section of Dunns Road".

Dunns Road resident Wayne Lennon made a verbal presentation to the council meeting, arguing in favour of lowering the speed limit on the road's east side from 80 to 60 kilometres per hour.

"Safety has always been our dominant push to have the road closed. Once it was to be sealed, we were looking for better ways to make it safer and suitable for everyone," he said.

"Through some negotiations with [Roads and Maritime Services] and council, we have been able to come up with a set of suggestions.

"The first of those was to convert the road unto an urban/rural road ... which meant that we could ask for lower speed limits and better facilities at the intersection of Lilli Pilli [Place] for the bus stop."

Mr Lennon said the project report's recommendations were a "win-win" for road users, nearby residents and the council itself.

"It would probably only take three or four years and you would recoup the money that council is going to put in through not having to maintain that road every three months," he said.

The council has been evaluating safety works on the notorious and mostly unsealed road since 2017 when it received the first of two federal government grants that now total $5.8 million.

Cr Dan Hayes said that residents had pointed out that the "challenging, dangerous" Dunns Road had a higher speed limit than other roads around Wagga that are "very safe, very solid".

"I think the key has been [roads authorities] coming on board to reduce the speed limit so we can build it to meet that need and it was no longer cost prohibitive," he said.

Cr Vanessa Keenan thanked residents and council staff for working together to achieve a "significant moment".

Cr Rod Kendall said the project would be the first in Wagga to use 'intelligent traffic signs' that responded to oncoming vehicles.

Cr Paul Funnell said it was "great to see this finally happening" given the "handy rabbit run" had turned into a "dangerous stretch of road".

Mayor Greg Conkey thanked Riverina MP Michael McCormack for help in securing additional funding when the initial grant did not meet the project cost.