A delegated decision by Powys County Council’s cabinet member for the environment, Cllr Heulwen Hulme has been published which explains the proposals.
If approved, traffic will only be allowed to go in one direction along Newtown High Street and part of Short Bridge Street.
No driving will be allowed for part of Wesley Street at the current junction to Broad Street.
The report explains that the changes are being made after Transforming Towns grant funding from the Welsh Government was received.
The truncating of Wesley Street comes from a suggestion by Cllr Joy Jones who represents the Newtown East ward.
She believes the junction to Broad Street should be permanently closed on the grounds of pedestrian safety.
The report suggests that closing off Wesley Street from Broad Street would encourage a “cafe culture” for the area.
Cllr Jones explained that she had received requests from various people to close off Wesley Street.
Cllr Jones, who is also the deputy mayor of Newtown said: “Wesley St isn’t meant to be used as a right-hand turn for traffic taking a short cut off Broad Street.
“It is only an access road and there has been many complaints regarding it being miss used.
“It will give the Monty Club and 23 Social the opportunity to use this part of Wesley Street as outside seating area if they feel it’s appropriate for their business.”
Cllr Jones said: “I really hope that changes to High Street will be an improvement for drivers and pedestrians.
“With vehicles becoming larger and lorries trying to unload along High Street it sometimes feels like an obstacle course with drivers dodging each other as well as pedestrians trying to cross. while people try to get in and out of their parked car.
“There are also plans to move the disabled bays to another area on High St to make them easier to use.
“At the moment they are in a sloped position which makes it very difficult for some people to use.
“I have asked for this to be changed for years so I am pleased PCC have listened.”
Dyfed-Powys Police have said that they support the changes, and the decision will come into force on Friday, December 17.