Plans for a major upgrade to a congested road corridor in Sydney's inner south will be scaled back after concerns from residents and City of Sydney about the size of the project.

Tentative plans unveiled more than two years ago for a 3.2-kilometre road corridor from Alexandria to Moore Park included extra lanes, bigger intersections, 24-hour clearways at the cost of car parking, trees, and properties – potentially including a large pub. They were designed to help cope with vehicles funnelled from an interchange at St Peters for the WestConnex toll road.

But the state's transport agency has since undertaken more detailed plans on incorporating the road upgrade into a broader transport strategy for the fast-growing suburbs in the inner south.

The owner of the Moore Park View Hotel on the corner of South Dowling and Lachlan streets is longing for certainty. Credit:Wolter Peeters

Transport for NSW secretary Rodd Staples said the agency was rethinking the scope of the project, after "some really strong views" from the City of Sydney Council.