After a public consultation period, the authority approved the raising of London Circuit as well as putting traffic lights at the intersection of Parkes Way and Coranderrk Street, a statement from the NCA, which oversees land in the parliamentary triangle, said.

The works will raise London Circuit six metres to be in line with Commonwealth Avenue, changing the current split-level, overpass-underpass configuration into a level intersection.

It will also allow for the light rail line to be extended from its current end point at Alinga Street to Commonwealth Avenue, supporting Stage 2 of the ACT government's plans to extend it to Woden.

Construction will also include new pedestrian footpath links and dedicated cycle lanes.

Approximately 60,000 cubic metres of fill will raise the current road to form an at-grade intersection with Commonwealth Avenue. Two of the existing cloverleaf ramps will also be removed, with access routes via Edinburgh Avenue and Constitution Avenue channelling traffic to the City's west and east.

The procurement process has begun and construction is expected to begin later this year.

The most disruptive construction work likely to begin in 2023 with the removal of the Commonwealth Avenue overpasses over London Circuit, the territory government said.

Chief Minister Andrew Barr said the project would be a step forward in plans to bring the city and lake closer, and support hundreds of local jobs in the process.

"It will support many of the additional infrastructure commitments the ACT government has planned in the city centre, including the extension of the light rail network to Woden, the renewal of the Canberra Theatre precinct and the Acton Park boardwalk," he said.

"The delivery of our infrastructure program will not only support our employment market over the coming years - but will deliver a more connected, sustainable and vibrant places to live in the future."

The NCA said key issues raised by members of the community in consultation included the "need for the removal of the cloverleaves, the landscape and the public realm, construction traffic and disruption, changes to traffic post-construction and, finally, pedestrian, cyclist and road vehicle safety".

All issues raised in the 126 submissions were considered and it was concluded the proposal is not inconsistent with the National Capital Plan, the authority said.

"Since 2006 the [National Capital] Plan, approved by both the Australian Parliament and the ACT government, has included mechanisms that enable the establishment of a four-way intersection at London Circuit and alter the current cloverleaf arrangements to support initiatives to renew the city centre and bring future residential and mixed use activity closer to Lake Burley Griffin," authority chief executive Sally Barnes said in the statement.

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Ms Barnes said issues raised about the mode of transport, project management and total cost were beyond the authority's legislative reach, and the responsibility of the ACT government.

The approval does not include design work or construction proposals commissioned for Light Rail Stage 2A (to Commonwealth Park) and Stage 2B (to Woden).

The plan to undertake the extension of the light rail will need to have a separate Works Approval application.

"The NCA will require future developments, after the cloverleaves are removed, to be of the highest quality and design," Ms Barnes said.

"The premium public realm and landscape features approved for the new intersection, for instance, will need to be carried over along Commonwealth Avenue and all the way through to Light Rail Stage 2A."

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