Dublin city councillors have agreed to introduce a so-called 'bus gate' at College Green during morning and evening rush hours which is due to be in place by the beginning of August.
A ban on private cars travelling in front of Trinity College and Bank of Ireland will operate during 7am to 10am and 4pm to 7pm Monday to Friday.
Councillors decided by 15 votes to 12 to introduce the traffic restriction, which is designed to reduce congestion and improve flows for buses, cyclists and pedestrians.
It was opposed by city centre businesses who claimed it could cause job losses.
The Dublin City Centre Business Association and Chamber of Commerce also said the move was premature pending a decision on the Metro and other traffic improvements including the opening of the Samuel Beckett Bridge at Macken St.
The change will also involve wider footpaths and extra crossing points for pedestrians.