The Archway roundabout will be removed after several years of negotiations.
The plan will allow the isolated Archway Close and Flowers Mews to reconnect with the surrounding area, providing an improved pedestrian space.
Kaya Schwartz, a councillor for Junction ward said: “It is one of the key changes that will improve the town centre, kick-start its regeneration and transform the area.”
The council has been working to reduce disruption by reconnecting parts of the town centre.
This will include work to improve access to the island, which is currently surrounded by the one-way gyratory system.
“The removal will help motorists and pedestrians but it will also create significant improvements for cyclists for whom the one-way system is a significant barrier to cycling in the area,” said Ms Schwartz.
The Archway community has been awaiting this decision for a long time.
In March 2012, pedestrians and cyclists protested at the Archway gyratory to highlight its danger and inefficiency.
Marion, 32, a local mother of two, said: “The roundabout created a lot of problems. A lot of children walk on Holloway Road to go to school and if the traffic will be more fluent, there will be less pollution.”
