The brakes are set to be slammed on a plan for Melbourne's first cycle rickshaw service, after advice the three-wheel vehicles could cause traffic obstructions and pose safety risks to cyclists.

A permit application has been lodged with Melbourne City Council to immediately launch a fleet of 20 Green Monkey rickshaws to be based in strategic locations in the CBD, Docklands and Southbank.

This could be Melbourne: Tourists in New York City ride in a tuk-tuk. Credit:Getty Images

Otherwise known as cyclo or pedicabs, the pedal-powered carts are typically used to ferry one or two people short distances and are a well-established form of transport in many cities.

But there are serious concerns they will not work in Melbourne.