Silver Street is to become a fully pedestrianised area and will no longer be open to traffic while Hall Gate will be narrowed and made one way - allowing cafes and bars to offer alfresco areas and pavement cafes.
Doncaster Council wants to turn the streets into 'vibrant areas' and the Quality Streets scheme has been given the go-ahead by the authority's Cabinet.
Hall Gate will be narrowed to make it one way to all traffic and pavements will be upgraded and made wider, creating more outside space for businesses to have alfresco areas. Bus stops will be improved, dedicated cycle lanes installed and existing parking bays removed.
Silver Street will become a fully pedestrian area with the street closed to all traffic and loading bays and the taxi rank removed.
A council spokesman said: "This will have great benefits for businesses allowing them to create alfresco areas and visitors and residents will be able to enjoy the space and new attractions free from traffic."
The proposal also includes introducing unique lighting to help build vibrancy to the area.
"The lighting will be themed for different events such as the Tour de Yorkshire or St Leger and this will help to create a real buzz in the town centre," added the statement.
The scheme is also expected to bring new jobs and investment to Doncaster.
The scheme will be funded by the council and is seeking another £1.35million from the Sheffield City Region Growth Fund (SCRIF).
Coun Bill Mordue, Cabinet Member for Business, Skills and Economic Development, said: “The proposals for Hall Gate and Silver Street will help rejuvenate the area and help businesses diversify their offer. This is another example of the Urban Centre Masterplan coming to fruition, showing that Doncaster is moving in the right direction and delivering on its ambitious regeneration plans.
“Currently on Silver Street, one side of the road houses bars and night clubs and the other side eateries. This creates a conflict between pedestrians and traffic, as people move from one side of the road to the other. By pedestrianising this area we will remove this barrier making the area safer and at the same time we will bring a real vibrancy into this part of the town centre.
“We are currently speaking to all the businesses situated on Hall Gate and Silver Street, to gather their views about the proposals. We have also spoken to taxi drivers and seeking residents’ views that live in accommodation on these streets. The feedback we have received so far has been positive and they are in favour of the changes. We anticipate that works will begin in late summer.”
For more details about the Quality Streets scheme visit: www.doncaster.gov.uk/qualitystreets