Councillors for Edinburgh City Council are considering plans which would revitalise the capital.
It is understood the plans include a number of continental-style cafés and restaurants being erected along Princes Street.
The decision comes after concerns were raised over the area's shopping potential no longer adequate enough to encourage people to visit the famous street.
Footfall has continued to decline on Princes Street for the last 20 years.
Current planning rules for the city mean only retail outlets are allowed along the mile-long street, but the council is said to be considering allowing 25 small shop units to be refurbished into cafés, bars and restaurants, with outdoor seating areas on the pavement.
Speaking to BBC Scotland, Edinburgh City Council Planning Convener, Councillor Ian Perry, explained: "If we look over the last 20 years, the footfall of Princes Street has been declining and it's been declining year on year, even despite the tramworks.
"So what we need to do is revitalise what we are offering in Princes Street. We want to change the retail mix to attract more people in."
If the plans are approved, it is thought the new regulations could be in place to allow outdoor dining from next summer.
(JP/CD)
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