The project, which will begin on 15 July, is estimated to take up to 10 weeks and will see part of Shiphay Lane closed to all vehicles.
The highway will be reconstructed between Oak Park Avenue and the junction with Shiphay Avenue.
It will take place in two five-week phases - the first will be Oak Park Close to Shiphay Avenue, followed by Oak Park Close to Oak Park Avenue.
During the works, Shiphay Lane will be under a 24-hour closure between Dairy Hill and the junction with Shiphay Avenue.
Affected residents and businesses have been sent a letter advising them of the road closure, alternative parking locations and what they need to do before and during the works.
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During the closure period, a signed diversion route will direct vehicles along Shiphay Avenue, Marldon Road, Dart Avenue and Exe Hill onto Shiphay Lane. The same route applies in reverse for travel in the other direction.
A spokesperson at Torbay Council said: "We do recognise there is never a good time to close a road. It is hoped that by doing most of the work over the school summer holidays when traffic in the area is lower, the works can be completed as quickly as possible.
"The reconstruction of the road requires the contractors to dig down 425mm (17in). They will remove the current road material and then build up the structure again, finishing with two or three layers of surfacing.
"During the closure period, waste and recycling collections will remain the same. Residents should put out their waste bins, recycling boxes and bags on their normal collection days.
"Anyone who regularly travels along Shiphay Lane or the surrounding roads is advised to plan extra time for their journey and if possible, consider an alternative route.
"We thank residents and road users for their patience and co-operation during the disruption caused by these essential works."
The project is being carried out for Torbay Council by SWISCo and Cormac Contracting Ltd.
