The Wellington City Council is to revamp the controversial cycleway in the suburb of Island Bay.
The compromise will mean the footpath will be widened to include a dedicated cycleway, and cars will again be able to park up against the kerb.
The road will be widened to 3.5 metres on both sides and unmarked parking restored along the length of The Parade.
The deputy mayor, and local resident, Paul Eagle, said the proposal would benefit residents, cyclists, and businesses.
"Car parks go back in where they were taken out around the dairies, and essentially we've left the main strip, so, where businesses were concerned about losing trade and around the medical centre where those needing to get help could get to it easily, those angle parks have gone back in there."
But the Island Bay Residents Association President Vicky Greco was not convinced, saying the new layout was still unsafe, particularly for children and pedestrians.
"The community has stated they wanted the cycleway on the road side of the cars, the outside of the cars, and it doesn't give back the big wide parade the people have asked for."