Under the Mayor of London’s new Summer Streets Fund, Rivington Street and Redchurch Street will be transformed into pedestrian-only zones every Friday and Saturday throughout the summer.
The move will allow independent bars and restaurants to offer outdoor dining until midnight.
Businesses on both streets will be able to apply for free outdoor dining licences for the first three months of the scheme.
The £300,000 scheme, announced by Sadiq Khan, aims to boost London’s hospitality industry by supporting outdoor dining and extended opening hours across the capital.
Mr Khan said: “I’m delighted to announce the first of many new al fresco hotspots across the capital to help Londoners and visitors make the most of our summer this year.
“With new car-free, al fresco dining in Westminster, Shoreditch, Brixton, Leyton, there will be new and fantastic spaces to bring people together.”
The initiative is part of a wider effort to revitalise London’s hospitality, leisure, and tourism sectors, which generate more than £46 billion annually and support one in 10 jobs in the capital.
Justine Simons OBE, deputy mayor for culture and the creative industries, said: “There’s no place like London in the summer and this announcement will provide a fantastic opportunity for people to enjoy our incredible restaurants, pubs and bars.
“These new outdoor dining hotspots will bring our streets to life, creating new hubs for people to enjoy a drink or meal outside.”