Cars could be barred from much of StKilda's most famous shopping strip to make way for trams and pedestrians in a plan to transform one of Melbourne's busiest tram routes into a light railway.

The southern end of Acland Street, known for its cafes and bars, would be permanently closed to vehicle traffic and turned into an open air mall if a proposal by the government authority Public Transport Victoria goes ahead.

All change: St Kilda's tourist street could become more pedestrian- and tram-friendly. Credit:Michael Clayton-Jones

Fifty-one on-street car parking spaces would go, as would a tram stop half-way along Acland Street at the corner of Belford Street.

The proposal is one of a series of mooted changes to improve tram reliability along route 96, between St Kilda and East Brunswick, which was used by almost 17 million people in 2011-12.