The council said the designs for the cycle lanes and the use of pre-cast separators meant they could be installed quickly and at a lower cost than traditional cycleways.
The plan will result in the reinstitution of a two-way cycleway on the western side of College Street,which the government ripped up about five years ago.
The project will cost up to $7 million and be jointly funded by the council and the government. In contrast,the original 700-metre long cycleway built in 2011 along College Street cost $5 million.
Sydney lord mayor Clover Moore said Oxford,College and Liverpool streets had some of the heaviest bike traffic,and separated cycle lanes would have significant safety benefits and improve urban amenity.
"Cycling numbers have grown significantly over recent years,especially during COVID when many took to cycling for the first time,"she said.