Capel Street will be permanently traffic free after a public consultation on the proposal returned overwhelming support.
A Dublin City Council sub-committee approved the proposal on Wednesday morning.
Under the agreed proposals, all traffic coming from Parnell Street will be blocked on a 24/7 basis.
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Deliveries to businesses on the street will be restricted to between the hours of 6am and 11am.
Access for residents will be maintained and traffic will continue to cross from Strand Street Little to Strand Street Great.
The new measure will be implemented by the June Bank holiday at the latest to allow for DCC to consult with Transport Infrastructure Ireland and the gardai before the order under the Roads Act can be signed.
Until then, access will be maintained from Parnell Street.
The public consultation returned overwhelming support - 82.5% of local residents - for the ban of cars from Capel Street - which hosts popular boozers and restaurants such as The Boar's Head and Pantibar.
Chair of the Central Area Committee Councillor Ray McAdam told Dublin Live: "The go through traffic is being removed from Capel Street. We heard the overwhelming support during the consultation last month and the previous consultations over the last 18 months."
At the request of Cllr McAdam, an interim update will be carried out at the sub-committee's July meeting which will "detail any issues in regards to traffic management, traffic flows in the area, any issues in respect to policing or any issues in terms of accessibility."
"The Council has agreed that action will be taken if any serious issues are identified," added Cllr McAdam.
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