Mr Mulder said VicRoads had worked closely with the Department of Sustainability and Environment and other stakeholders to ensure environmental and cultural values were protected throughout the works.
"Works will be limited to the road reserve and won't impact on undisturbed ecological areas," Mr Mulder said.
"Sealing these gravel sections of the highway will reduce the impact of dust and silting of watercourses, which can adversely affect fish and frog habitats.
"VicRoads have conducted cultural and environmental assessments to ensure that all sensitive areas within the vicinity of the Highway that could be affected have been identified and processes established to address any potential issues," Mr Mulder said.
Some Mitta Valley residents were becoming nervous about the commencement and the announcement will provide optimism for the Valley.
Member for Benambra Bill Tilley said in addition to improving connections, the sealing of the unsealed sections of the Omeo Highway would provide benefits for industry, primary production, tourism and the community.
"The Omeo Highway is a strong part of Victoria's heritage as it was an original bullock drive used by our pioneering forefathers, and Victoria's first gazetted highway," Mr Tilley said.