Transport Minister Chris Steel said more disruptions would occur for a shorter period of time in late February or early March.

Works on the new stop are expected to take about seven months.

Services from between Gungahlin and EPIC stops will be replaced by buses between January 10 and 23.

"The rail replacement bus services will be free of charge for Canberrans who are inconvenienced by the construction of this additional stop," Mr Steel said.

Buses will operate every 3-15 minutes during the replacement period.

Light rail services will continue to run between Alinga Street and EPIC & Racecourse stops.

"Park & Ride facilities are available at EPIC for Canberrans who choose to travel to and from EPIC & Racecourse stop by car," Mr Steel said.

Early work has already started on the long-awaited light rail stop, which will be located at the corner of Flemington Road and Sandford Street.

"We now have shovels in the ground, having completed design work and progressed through planning approvals and procurement," Mr Steel said.

"By early next year we will be ready to crane in large parts of the stop, much of which is being pre-fabricated by a local firm offsite to minimise disruption to the local community and existing light rail passengers."

Business owners in Mitchell have been campaigning for the stop to be built for more than three years, saying it should have been included in the original Gungahlin light rail construction works.

Building the stop had been slated to be part of contracts for the construction of stage 2A of light rail from Civic to Commonwealth Park, but was pushed forward as part of the COVID-19 stimulus measures.