The bridge, which crosses the Yarra River, will be widened to three lanes. Two of the lanes will be for southbound traffic travelling from north Warrandyte to Warrandyte.
The existing pedestrian footpaths will be replaced with a new walkway over the river as part of the upgrade.
Improvements will also be made to accommodate an extra lane of traffic from the bridge at the roundabout at the Yarra Street and Warrandyte-Ringwood Road roundabout.
Traffic lights will also be installed at a wider Kangaroo Ground-Warrandyte Road and Research-Warrandyte Road intersection.
According to traffic modelling data, approximately 2500 vehicles per hour would potentially travel southbound across the bridge during an emergency evacuation compared to the current 1100 vehicles per hour during a typical morning peak.
The works will take place either side of the fire danger season and are expected to in March and be completed by the end of 2017.