Stoke Newington High Street's "outdated and intimidating " 1960s gyratory system will be ditched by next autumn to transform the town centre into a "safer, healthier and better place".
Transport for London (TfL) says its plans to reintroduce two-way traffic and add protected cycle space and pedestrian crossings, which were supported by 59 per cent of people in a consultation last month, will "put people first".
Currently traffic works in a triangular system, with only northbound traffic allowed up Stoke Newington High Street, and southbound traffic directed left into Rectory Road and right into Manse Road.
High levels of traffic, a lack of pedestrian crossings and rat-running in residential streets mean that "roads do not work as well as they could" for pedestrians and cyclists, according to TfL.
The 18-month overhaul would reduce the risk of collisions between vehicles and people who are walking and cycling - a key aim of the Mayor's "vision zero" goal to eliminate death and serious injury on London's roads.
It would see a northbound cycle lane and southbound bus and cycle lanes in Stoke Newington High Street, three new pedestrian crossings, traffic filters at the junctions of Tyssen, Hollar and Batley Roads to reduce rat-running, and the introduction of two-way traffic operation along Rectory, Manse and Evering Roads
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There would also be three new "pocket parks", with seats, trees, community gardens and cycle parking.
Changes were made in response to feedback from the consultation in October, including protection of the northbound cycle lane from vehicles approaching the junction to the high street, and a separation between southbound cyclists and vehicles at the junction of Stamford Hill and Northwold Road.
In October the council's eco chief Cllr Jon Burke said the plan needed tweaking - but now that updates have been made, he fully supports it.
"The Stoke Newington one-way system is currently dominated by polluting cars and prevents direct access through Stoke Newington, which discourages cycling and public transport use," he said.
"It has long been the priority of the council and the community to see these changes made, and TfL's plan will deliver significant public realm improvements, such as road filters and investment in green infrastructure, and provide more convenient southbound bus routes.
"I'd like to thank TfL for the flexibility they have shown in responding to our requests for modifications, including a significant increase in tree canopy cover across the scheme.
"The removal of the gyratory alongside the funds we have secured from the Mayor of London's Air Quality Fund are all part of our broader plans to improve the liveability of this important town centre."
Penny Rees from TfL added: "Our plans to transform Stoke Newington gyratory will make a big difference to people living in and visiting the area, reducing danger to people walking and cycling and enabling everyone to make the most of the high street."