New LED and ELV (extra low voltage 48v) technology will be installed.
A right turn filter arrow to assist with traffic flow turning from Neachells Lane into Alfred Squire Road will also be added, as well as an advanced stop line for cyclists.
The works are expected to take up to 8 weeks.
Temporary traffic lights will be in operation at times while work is carried out to replace the permanent traffic signals. There will also be lane restrictions at the junction during off peak hours, from 9.30am to 3.30pm.
City of Wolverhampton Council Cabinet Member for City Environment, Councillor Steve Evans, said: "The majority of the works will take place during the summer holidays to lessen disruption.
"We apologise for any inconvenience this may cause but the works will cut electricity costs and improve the junction for motorists and cyclists."
- released: Friday 29 July, 2016