The City of Sydney is looking to reduce CBD speed limits to 40km/h, with a proposal going to the New South Wales Parliament this week.
The proposal, which will be reviewed by a special road safety committee, outlines new 40km/h limits in the areas between Central Railway Station and Circular Quay, along with Darling Harbour, College Street and Taylor Square.
If approved, the new limits will join existing 40km/h speed zones in the Sydney area.
"Over the entire day there are 85,000 vehicles enter(ing) the city and ... 600,000 pedestrians enter the city," City of Sydney transport manager Terry Lee-Williams told the ABC.
"Therefore pedestrians take up a lot more space than the cars take up and they therefore deserve appropriate priority and safety."
Mr Lee-Williams said the reduced speed limits will not affect peak hour traffic, "because people rarely get above 30km/h at those times".
"This really is about the out-of-peak (and) shoulder times, when people speed up a little bit but there are still hundreds of thousands of pedestrians in the city."
The council's proposal said that a pedestrian hit by a vehicle travelling at 50km/h is twice as likely to be injured than by a car travelling at 40km/h.