Work to extend New Walk further into the city centre begins its first phase on Monday.
Leicester City Council is spending £700,000 rebuilding Southgates, which runs parallel to Vaughan Way, between the site of the former South-gates bus depot and the Magazine.
It will be part of a new footpath and cycle route linking the end of New Walk at Belvoir Street with the new Jubilee Square development and the wider Connecting Leicester project.
The city council received £550,000 from the Department for Transport's Cycle Safety Fund towards the project.
Pavements on both sides of Southgates will be rebuilt using the same finish as New Walk, which will match the improvements currently underway on nearby Applegate.
The west side of Southgates will have a separate two-way cycle lane, finished in red asphalt. New coach drop-off and pick up points will be built on the east side of the street.
City Mayor Peter Soulsby said: "The work on Southgates illustrates what we are aiming to achieve with Connecting Leicester. This road will become a key part of a new, more attractive route for pedestrians and cyclists into Jubilee Square and the city centre.''
