Five roundabouts in Weymouth are to be upgraded with a £9m grant as part of the town's Olympic preparations.
The town is set to jointly host the sailing events for the games in 2012 along with Portland.
The Department for Transport grant will be used to replace traffic lights on the roundabouts on the King Street and Boot Hill corridor.
The signals will be designed to manage traffic flow and give buses priority at junctions. Work will start in June.
Dorset will play host to 400 international athletes at the 2012 Olympic and Paralympic Games.
Sailing events for the games are to be held at the new-look Weymouth and Portland National Sailing Academy.
In another project to ease traffic, an £87m relief road is being built to ease traffic between Dorchester, Weymouth and Portland.