A radical new traffic system will be introduced on one of Melbourne's most gridlocked roads as part of an ambitious state government plan to reduce congestion in the inner-city.

As negotiations continue over the East West Link, the Andrews government has asked VicRoads to examine ways to "streamline" Hoddle Street by completely redesigning the way cars travel on the north-south connection.

Illustration: Matt Golding.

The $60 million plan would involve piloting what are known as "continuous flow intersections" – designed to reduce delays by giving right-turning traffic a dedicated lane on the far right-hand side of the road as cars approach a junction.

The system has worked successfully in several United States cities, but is considered controversial, not least because it often requires widening roads and acquiring land.