Camden Council has said it will ban the use of clamps for all but the most serious offenders.
The council decided in a meeting on Wednesday night to phase out clamping, but it has yet to decide when the policy will be introduced.
It believes the use of clamps hampers traffic flow.
But drivers abusing the disabled badge system and those persistently failing to pay parking fines could still find their vehicles clamped.
The Conservative and Lib Dem-run council had encountered opposition from some Labour councillors who believed getting rid of clamping would lead to a serious loss in revenue.
Council leader Keith Moffitt said: "Camden Council has listened to residents and is giving them a fair deal on parking. We are stopping clamping those who make a simple mistake, but will continue to clamp the worst offenders.
"Residents want to see that we are enforcing parking rules as fairly and clearly as possible, to help cut congestion, pollution and traffic accidents on our roads."
The council said a recent survey of local residents had found six out of 10 people believed there was too much clamping.
Last year Islington became the first council to abolish clamping following complaints from drivers.