Dublin Bus has softened its objections to plans for a pedestrian plaza at College Green ahead of next Monday's oral hearing by An Bord Pleanála.
The bus company is now willing to accept a ban on East-West traffic along Dame Street as long as buses can move two-way on Parliament Street opposite City Hall.
This follows the congestion at College Green since the introduction of the Luas Cross City, which increased Dublin Bus journey times through the area by up 143% during the morning peak.
It has since rerouted 30% of its routes away from College Green.
But in its latest submission Dublin Bus again asks for the plaza to be postponed until the 'Bus Connects' review of services is completed.
In its previous submission Dublin Bus had been highly critical of the plan calling it "socially regressive", claiming that 10 million passenger journeys a year would be displaced and that the city council had not carried out proper research.
The National Transport Authority in its submission said it supported the plaza plan subject to having two-way bus movement on Parliament Street with low emission vehicles and a segregated cycle track through the plaza.
At present there is no specific cycle facility and in its submission the Irish Wheelchair Association has called for cyclists to be required to dismount while travelling through the plaza.
MyTaxi - formerly Hailo - objects to the ban on East-West traffic saying it could increase taxi fares by 25% and says that 19% of all taxi journeys starting within the canals go through College Green.
The Incoming Tour Operators Association representing 32 companies said the pedestrianisation could damage tourism by disrupting tours and transfers to conference venues.
The submissions are among a total of 16 made to the planning board as part of a second round of public consultation because the first was not for the length of time required.
The plan went to An Bord Pleanála after a group of Dublin businesses called the Dublin City Centre Traders Alliance, which is chaired by property developer Noel Smyth, threatened to take a case to the High Court.
The hearing is due to begin next Monday and last around five days.