UPDATE: The Warrego Hwy between Toowoomba and Oakey will receive a $110 million upgrade with much of the section to become two lanes in both directions.

The upgrade, funded by the State and Federal governments, is part of the $635m Warrego Highway Upgrade Package.

Two lanes in each direction will be built between Charlton and Cotswold Hills, Deputy Prime Minister Warren Truss said this morning.

"We are prioritising construction of this section of the Warrego Highway because it will intersect with the future Toowoomba Second Range Crossing," Mr Truss said.

"The Warrego Highway connects the agricultural and resource regions west of Toowoomba to the Port of Brisbane, so the economic potential of these upgrades is enormous.

"In fact, every dollar spent on this project will return to the economy more than five times the cost of our investment.

"We know that our regions are the backbone of our economy, which is why the Australian Government is prioritising the infrastructure that our regions need to prosper."

Queensland Minister for Transport and Main Roads Scott Emerson said that beyond the significant economic benefits, the project was part of our strong plan to deliver safety improvements for drivers on the Warrego Hwy.

"The duplication will separate eastbound and westbound traffic, markedly reducing the chance of head-on collisions," Mr Emerson said.

"Truck drivers, farmers and commuters will all look forward to construction on the project starting early next year, with completion due at the end of 2016."

The Australian Government has committed up to $88 million to the project, with the Queensland Government providing $22 million.

EARLIER: The Queensland and Federal governments will this morning announce a $110 million upgrade of the Warrego Hwy between Toowoomba and Oakey.

Deputy Prime Minister Warren Truss and Transport and Main Roads Minister Scott Emerson will announce the funding at a media event near Toowoomba.

Several serious crashes - some fatal - have occurred on the 40km section of highway in recent years.

Mining and coal seam gas projects across the Surat Basin to Toowoomba's west have caused a recent surge in heavy vehicles using the highway.

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