A new piazza is one of several new plans for Oxford Street which have been approved by Westminster City Council.
The public space would be created on Oxford Circus with buses re-routed on either side of Regent Street.
During the busiest times of the day several other streets would be closed to cars and buses, with many of the pavements along the famous shopping area widened.
The speed limit would be brought down from 30mph to 20mph and all vehicles without zero-emissions would be banned.
The blueprint - which the council claim will improve the area for people walking on the street - received overall support from people who took part in a consultation by Westminster City Council.
Last June, Westminster Council pulled the plug on a scheme by London's Mayor to pedestrianise Oxford Street over claims it didn't have support from residents or businesses.
It had been Sadiq Khan's ambition to turn the area into a 'car-friendly zone'.
He warns these plans don't go far enough.
Cllr Richard Beddoe from Westminster City Council said:
"As proud custodians of the Oxford Street District, the council is determined to make sure it retains the crown as the nation’s high street in the face of huge challenges and online competition.
"We’ve carefully looked at every response received and made changes to the strategy as a result. We’ve always said that we will listen carefully to those who live, work, visit or have a business in the district so we develop the best scheme that will future proof this vital and iconic part of Westminster and the West End."
Work would start to begin in the Spring with £150 million being used initially to get the changes underway.