Bank junction is set to be closed to all traffic apart from buses from Spring 2017.
As part of the City of London Corporation's project "Bank on Safety", the six arms of the busy junction will be closed to traffic between 7am and 7pm on weekdays.
The plan is to be put to the local planning and transport committee and voted on in December. If it is approved, it will be implemented in the months following.
The City of London Corporation is aiming to achieve a reduction in the number of collisions at Bank junction with the proposal. Plans to pedestrianise the junction picked up speed after Ying Tao, a young PwC employee, was killed cycling through it last year.
It is also hoped the change will reduce bus journey times for workers travelling to and from the City.
There were three plans initially put forward for the closure of Bank junction in February this year.
One would have prevented vehicles moving up and down King William Street and Princes Street, blocking the north-south route through the junction. A second option would have restricted east-west movements through the junction by routing traffic around Cornhill Street and Cheapside.
The current plan will block all of the entrances to the junction to cars and trucks. Bikes will be allowed to go through the junction, and it is not yet decided whether taxis will be allowed through.
Chris Hayward, chairman of the Planning and Transportation Committee at the City of London Corporation said:
Bank junction is currently congested, dangerous and polluted and it doesn't work well for anyone - cyclists, pedestrians or drivers.
We are therefore looking at what we might do to improve safety, reduce pollution and create an appropriate setting for the beautiful and important buildings - Mansion House, The Bank of England and the Royal Exchange - at the heart of the City.
The change is one step along the way to fully pedestrianising Bank during working hours, something the City of London Corporation is also considering. However, full pedestrianisation wouldn't be delivered until 2020 at the earliest if that plan was approved.