This would also allow for the creation of a civic plaza in College Green, from Church Lane to Lower Grafton Street, which it is hoped would become a major tourism attraction.
Green Party councillor Ciaran Cuffe, who chairs the council's Strategic Policy Committee on transport, welcomed the plans for the city centre.
"This is a once-in-a-lifetime opportunity to reclaim a civic space in the heart of Dublin city," he said.
"I think it is visionary, necessary and achievable."
