THE O'Farrell government will soon be asked to approve a sweeping overhaul of Sydney's central business district, including plans for light rail down George Street and significant changes to bus routes.

Transport bureaucrats and consultants are close to finishing two studies that have the potential to reshape the way residents move about the CBD.

Artist's impression of the light rail in George Street in the CBD.

The studies, commissioned by the former Labor government, have identified George Street as the best route to run a tram line. It would go from Central Station to Alfred Street near Circular Quay.

But the government would also need to be prepared to redirect cars and buses to accommodate the trams.