The City of Yarra is investigating closing Brunswick Street to through traffic and expanding space for pedestrians and traders in a plan to remake one of Melbourne's most iconic shopping strips.

The proposal to phase out the ability to use Fitzroy's most famous street as a thoroughfare is part of a long-term council project to remake the "Brunswick Street and St Georges Road corridor".

A council survey has found that less than 30 per cent of visitors to Brunswick Street come by car, with the rest walking, travelling by tram or cycling.

Under a series of recommendations put to the council, Brunswick Street would, eventually, be turned over to pedestrians, trams and cyclists between Alexandra and Victoria parades.

Motorised traffic would be limited to "local access and vehicles associated with servicing traders", notes from a July report to the council show.

About 13,000 vehicles a day use this stretch of Brunswick Street, a 2012 council traffic count found.

The proposal stems from a local working group of 12 traders and residents recruited by the City of Yarra to  consider ways to build on "the iconic, vibrant, high-quality character of Brunswick Street".

The group proposed in its report to the council "working towards a significant reduction of through traffic by 2025" and conducting "an assessment of the impacts on the surrounding network under the scenario of permanently closing Brunswick Street to through traffic".

Proposals to change the face of Brunswick Street include replacing on-street parking with pedestrian spaces and bike corrals, remodelling the street around new platform tram stops and trading spaces, and beautifying it with planter boxes, trees and public art.

The group also wants to turn residential Napier Street into Fitzroy's main commuter bike route, with Brunswick Street relegated to a "destination route for riders".

This recommendation follows findings that cyclists make up half of reported road injuries in Brunswick Street but just 10 per cent of traffic.

Among the working group was Mil Hanna, a former Carlton footballer and the owner of The Fitz cafe for the past 23 years, who said the group discussed "what the street might look like in five or 10 years' time".

Mr Hanna said that increased congestion on the roads and that bars and cafes had sprouted all over Melbourne meant "people no longer need to hop in their cars and come here just to get a cooked breakfast and a latte".

"As a trader, what I rely on now is locals and local workers, and the way I see inner suburban places like Fitzroy surviving is high-density living," he said.

He said few motorists used Brunswick Street as a thoroughfare.

Sam Gaylard, a Yarra Greens councillor, said Brunswick Street had a great history but needed to evolve.

"It's about the transition of our city, where we won't just look at the street as a throughput for cars, but somewhere people want to go because it's so attractive to be there," Cr Gaylard said.

He said there was no plan to ban cars from Brunswick Street but reducing car traffic would not stop people visiting to shop, eat and drink.

"If we're looking at it from a trader's point of view, then the only way to expand business is by attracting people using PT, bikes or walking," he said.

However, traders were split on the idea.

Niko Lewis, co-owner of Babka Bakery Cafe, said it was a terrible proposal that would inconvenience his customers.

"People don't do their shopping on a tram or a pushbike," Mr Lewis said.

Black Cat assistant manager James Ragg said he had seen pedestrian streets that worked well in New Zealand.

"If it was pedestrianised, you would get more foot traffic at night," Mr Ragg said.

With Nadia Wu