Two city blocks along Elizabeth Street would be closed to cars under a plan to transform one of the last eyesores in Melbourne’s CBD into a more pedestrian and cyclist friendly gateway to the city.

Under the plan, to be considered by Melbourne City Council next week, the blocks between La Trobe and Little Lonsdale streets and Little Bourke and Bourke streets would be completely shut off to cars and trucks.

An artist's impression of some of the planned changes.

The area would be revitalised with widened bluestone footpaths, bike lanes and street furniture along with al fresco dining.

The blocks between Little Lonsdale and Lonsdale streets and Bourke and Little Collins Streets would also be blocked to southbound traffic, with footpaths on the eastern side of Elizabeth Street extended to the tram tracks.