Lake Macquarie mayor Jodie Harrison was among politicians who took part in a sod turning ceremony at the Glendale site on Monday.

The work will involve extending Glendale Drive and Stockland Drive, traffic lights, a roundabout and new bridge over Winding Creek.

Cr Harrison said the work would deliver a regionally significant infrastructure project.

Construction of Section 1 would provide a faster and more direct route to the Hunter Sports Centre, and improved access to the services, entertainment and retail outlets at Glendale.

"When all stages are complete, the Lake Macquarie Transport Interchange will further benefit residents and businesses by providing better public transport infrastructure to reduce traffic congestion," Cr Harrison said.

The work is being carried out by Daracon Contractors, a local construction company, and will sustain about 60 fulltime jobs.

Independent Member for Lake Macquarie Greg Piper was a councillor when the project was first mooted 17 years ago, and was involved in the development of the proposal when he was mayor.

"I have always had great belief in the potential of the interchange to transform Glendale and surrounding suburbs into a regional hub for commercial and residential growth," he said.

"The start of this long-awaited project will hopefully provide impetus to secure the funding needed to complete this vital infrastructure."

About $100 million is needed to complete the project. It is jointly funded by the federal and state governments, Stockland and council.