The state government has backed away from an unpopular plan to remove on-street parking and a number of bus stops from Gympie Road as part of its $53 million Northern Transitway.

The 2.3 kilometre project would have had 24/7 bus lanes between Sadlier Street and Hamilton Road, but after strong community feedback, Transport Minister Mark Bailey announced on Friday that bus-lane hours would be cut back.

The proposal for Gympie Road would have seen permanent bus lanes operating all hours of the day and night. Credit:Fairfax

The lanes in both directions will operate during weekday peak periods only, between 6am-9am and 3pm-6pm, with bus stops at Strathmore Street and Castle Street in Kedron retained.

The move will allow businesses to keep on-street parking while still reducing bus travel times for about 5000 passengers during weekday peak periods.