The Planning Authority has approved the pedestrianisation of the Tritons Fountain area just outside City Gate.
Trees will be uprooted and eventually replanted in the Valletta ditch.
A new roundabout will be built in front of the Ministry of Education in Great Siege Road and the pavement in front of the Phoenicia Hotel will be rebuilt once utility services are laid.
The area will include 10 kiosks and a tourist information booth.