The city will begin banning cars from five blocks of Manhattan’s 14th Street next week after an appellate court refused to block the plan on Friday.

Hours after a five-judge panel from the Manhattan Supreme Court’s Appellate Division ruled 3-2 against West Village lawyer Arthur Schwartz’s bid to stall the city’s “busway” project, transit officials announced that the car ban would start on Thursday.

The plan will restrict traffic to buses and trucks on 14th Street between Third and Ninth avenues, but still allow delivery and local residents’ vehicles on the stretch.

“Thanks to this latest court ruling, the new 14th Street busway has gotten the green light, and starting next week, bus riders will finally get moving,’’ Mayor Bill de Blasio said in a statement.

“This is a smart project that speeds up buses and leaves room for the drop-offs and deliveries the neighborhood needs.”

The ban was initially slated to launch July 1 before it was halted by Manhattan Supreme Court Judge Eileen Rakower’s June 28 preliminary injunction.

But Rakower ultimately sided with the city, which argued that it has the right to institute traffic regulations on city-owned streets.

Schwartz filed his appeal three days later seeking a stay. He won the stay, and the appeals court lifted it Friday.

Schwartz told The Post that his original suit still stands and that he would continue to fight his case. He said a judge likely wouldn’t hear his suit until January.

“My neighbors in Chelsea and the [West] Village are going to be bracing themselves for an onslaught of cars coming down the streets during the day,” he said of the expected rerouted traffic.

But transit officials and advocates say the M14 bus, which carries 27,000 riders a day along 14th Street and is the city’s worst-performing route, desperately needs a dedicated path for its buses.

The MTA anticipates that the car ban will cut two to nine minutes off bus riders’ commute time.

“New Yorkers who ride the M14 are about to see their bus line transformed from one of the city’s slowest into one of the fastest practically overnight,” said Tom DeVito of Transportation Alternatives, which came up with the busway concept three years ago in response to the since-canceled L train shutdown.

“This should bring an end to the legal shenanigans that have been holding up these improvements for months on end.”

Once instituted, the car ban — billed as an 18-month pilot — will be in effect seven days a week from 6 a.m. to 10 p.m. Bus lane paint and signage for the project has been in place since this summer.

Additional reporting by Priscilla DeGregory