Melbourne City Council will ease the crush of pedestrians and cyclists on Southbank Promenade under a $5 million revamp of the riverside walkway.

A 300-metre stretch of Southbank Promenade between the Princes Bridge and Evan Walker Bridge will be re-designed to make it more pedestrian friendly, the council's $619 million draft budget reveals.

"Fast moving cyclists and walkers don’t mix." Credit:Eddie Jim

High-speed cyclists will be directed to a new separated bike route from the Swan Street Bridge along Linlithgow Avenue and Southbank Boulevard, to the Yarra.

Construction of the new bike corridor is already under way and is set to be finished later this year, with a further $12 million set aside in the budget to be spent on the project. New bike lanes will be also be put on Kavanagh Street.