Transport for NSW plans to install traffic lights where Murray Street meets Edward Street, increase the capacity of the Docker Street and Sturt Highway junction and upgrade the Murray Street and Brookong Avenue intersection.

A potential dual lane roundabout at the Morgan Street, Docker Street and Bolton Street intersection has not been confirmed but was revealed in planning documents for the third and final stage of the $431 million hospital revamp.

A traffic analysis report prepared for the hospital found that surrounding intersections are expected to operate at or over capacity in 2031.

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A Transport for NSW spokeswoman said the department was carrying out "preliminary investigations" and developing concept designs for the three confirmed intersections and would seek community feedback later this month.

"Transport for NSW continues to liaise with Wagga City Council and Health Infrastructure to minimise disruption to the community and ensure these designs feed into the broader transport plan for the area," the spokeswoman said.

It comes after the Southern Regional Planning Panel approved NSW Health Infrastructure's plans for the highly anticipated but now controversial hospital campus car parking works, which will fall 300 spaces short of the promised total car parks.

Wagga councillor Dan Hayes, who sits on the traffic committee, was part of the regional Southern Regional Planning Panel that reviewed Health Infrastructure's proposal for the car parking works.

He said a Murray and Edward Street upgrade would be "long-awaited treatment" for a "potentially dangerous" intersection.

"We've made some improvements over the years. We ask drivers to take as much care as possible," he said.

"If they've decided it warrants traffic lights to improve the safety. I think most residents will be happy to see that intersection upgraded."

Cr Hayes welcomed the potential improvements across the precinct but said the "broken promise" of the multi-storey car park - expected to be constructed next year - could add traffic pressure to the precinct.

"What we're seeing potentially is money going into some needed projects, but potentially if we were actually provided with the actual 800 space car park promised by [NSW Health Minister Brad Hazzard], I think we would have a better outcome," he said.

Health Infrastructure's traffic assessment report says the hospital campus will see a net increase of 441 car parking spaces, with the multi-storey car park expected to accommodate 61 per cent of redistributed traffic and two at-grade car parks expected to accommodate the remainder.

The intersections around the hospital have been identified for critical improvements under the NSW and federal governments' "Black Spot" road safety funding program.