PCs David Bulleyment, 31, Eric Renshaw, 45, and Colin Ross, 33, WPC Lillian Sullivan, 41, and WPS Elizabeth Burton, 40, all died when their vehicle overturned at Newton Hill in May 1978.
The coach had been carrying the officers and dozens of their colleagues to a Police Federation conference in Blackpool. Another 23 were injured.
An inquest was told the coach’s brakes had failed.
There had originally been safety concerns expressed about the roundabout after a number of accidents, after four lorries had overturned in the 13 months prior to the fatal accident, and local residents lobbying the council for changes to the road layout.
Now after 45 years, plans are in place by Wakefield Council to install a permanent tribute to the officers.
It comes after the completion of a £9.7m major redevelopment of the roundabout, on the A650 to the north of the city centre.
The long-awaited work includes new carriageways to improve traffic flow, pedestrian crossings, traffic lights and cycling lanes.
The memorial plan is part of a second phase of work at the roundabout, which includes landscaping public land next to the roundabout and tree planting.
Details of the plans were revealed at a full council meeting.
Michael Morley, cabinet member for planning and highways, said: “It is an absolute delight that it is finished now.
“There will be a memorial to all the police officers that were killed in that tragic coach crash in May 1978.
“We will be marking that with a ceremony.”
Councillor David Pickersgill asked: “I think it is unfortunate that it has taken us this long to do a proper memorial to the police coach crash.
“I think it would be good to have plenty of notice so that we can have a wider community attendance.”
Coun Morley said the council is consulting with the Police Federation and local residents on the tribute.
He added: “We will give plenty of notice so they can attend.”
The idea for a memorial was first raised in 2019.
Speaking at the time, Police Federation chairman Brian Booth said: “We think it’s a fantastic idea. We’re fully supportive of it.
“It’s absolutely the right thing to do to remember them. It was a massive tragedy and it’s important we recognise the contribution of those officers to society.”
Neil Bulleyment, son of PC Bulleyment, said: “I think the idea is long overdue to be honest.
“I’ve seen various police forces up and down the the UK all pay tribute to the officers they’ve lost, and I think West Yorkshire should too.
Mr Bulleyment, who was four at the time of his father’s death, added: “I think since 1978, something has been lacking, even if there was just a small plaque there it would have been nice. It’s a great shame really.”