Bus stops in Queens Street will be moved to make it safer for shoppers
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Buses could be banned from Oxford city centre to try and make it more pedestrian-friendly.
The measures, announced by Oxfordshire County Council, aim to make the historic city more welcoming and safer for shoppers and visitors.
Bus stops will be moved and there are plans to introduce state-of-the-art tram-like vehicles.
If approved, work will start in Queen Street next year and will include diverting traffic and landscaped roads.
"Oxford is one of the most famous cities in the world," said council leader Keith Mitchell.
"We must act to make sure it thrives and retains both its competitive edge and splendid historic charm."
Under the plans bus routes would be diverted, pavements would be widened and the road landscaped.
George Street and Magdalen Street could also be pedestrianised in 2010, which could lead to the creation of outdoor street cafes and restaurants.
'Very pleased'
Major changes are also being proposed in the High Street, St Aldates, Broad Street and Frideswide Square.
The measures have been welcomed by many in the business community.
Jeremy Mogford, of the High Street Business Association, said he was "very pleased" with the proposals.
If the plans are approved work could start in Queen Street next year
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"I trust the removal of most of the buses is an integral part of the vision," he said.
Debbie Dance, from the Oxford Preservation Trust, said: "These plans will undoubtedly help retain and improve that wonderful mixture of historic splendour and forward-looking vibrancy that helps make Oxford the wonderful place that it is."
However, some people said they were worried about the bus stops being moved further away from the main shopping area.
Shopkeeper Nick Cooper said "Anything that makes it harder for people to get into the centre of Oxford is not great news."
The county council said it was committed to the improvements but would seek views from local people, businesses and other interested parties.
Councillor Ian Hudspeth said: "We want to give Oxford every chance to thrive in what look like being prolonged difficult economic times."
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