Oxfordshire County Council wants to widen roads, upgrade paths and cycle lanes and install traffic lights at the John Radcliffe Hospital junction.
Headington residents are concerned the work will cause disruption.
Councillor David Nimmo Smith said it was "time to deal" with the area's traffic problems.
Drop in sessions for people to view the plans will take place this week.
Work is expected to start next summer with completion in spring 2018.
Meanwhile work at the busy Cutteslowe and Wolvercote roundabouts is due to start this month and will take about 16 months.
The council has warned of "major" travel delays.

On Wednesday, the Supreme Court ruled that the PSNI was wrong to allow the protests to take place in the city.
The court found in favour of a resident who claimed the police failed in its legal duty to stop the parades.
Loyalists protested for weeks after Belfast City Council opted not to fly the union flag every day of the year.
On Thursday, Mr Hamilton said the Supreme Court ruling against police makes for "uncomfortable reading", but that he accepted it.
"I apologise to the residents of Short Strand and to anyone else who was inconvenienced by this parade," he said.
"The residents had their rights curtailed as a result of us allowing that parade to go forward, so I acknowledge that we have a job to do in some quarters in terms of regaining trust and confidence."
Mr Hamilton said that the flag protests had presented a challenging period for the police: "There were many times when we had 80 to 120 protest sites across Northern Ireland."
He added that he accepted and respected the Supreme Court judgement.
"It is good, actually, after four years of legal debate and a lot of scrutiny around this to have some judicial clarity," he said.
"It is uncomfortable reading in parts for us, but it does bring some clarity to us and we will review how we handle un-notified parades in the future in light of this."
The ruling also identified the importance of police "operational discretion", he said.
"This judgement is not saying that every time there is an un-notified parade, the police should stop it. What it means is that the police have the power to stop it.
"So in some ways it's another tactic for us dealing with this very difficult and unresolved issue in Northern Ireland."

It includes the Buckskin area of Basingstoke, where more than 80 homes were evacuated in February 2014 after groundwater flooding.
Hampshire County Council can now access a Â£2.1m fund a year earlier than originally expected from 2016-17.
Schemes for Romsey and Winchester can now access funding immediately rather than having to wait until 2020.
Many residents in Buckskin were unable to return to their homes until the following winter after more than 77 million litres of water had to be pumped out.
An independent report recommended a review of the area's drainage system and the "setting up [of] a threshold at which point actions should be taken".
Hampshire County Council has already started the first phase of a feasibility study to mitigate flooding. The funding is subject to the approval of a business case.
Cleansing and repairs to the existing infrastructure in Buckskin has already started while an electricity substation has been moved.
Plans for a £12.5m scheme aimed at cutting congestion in Oxford have been put out to consultation.
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PSNI Chief Constable George Hamilton has apologised to residents in the Short Strand area of Belfast over the handling of the union flag protests.
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Central government funding has been brought forward for a number of flood defence schemes across Hampshire.