The temporary bus lane will extend the existing bus lane on the A653 into the city centre onto Victoria Road and Neville Street.
It is hoped this will reduce delays for buses travelling into the city centre while also making it easier for cyclists to travel along the route.
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Changes to traffic management on the approach to City Square are being introduced to prioritise bus services, ahead of the next stage of works to significantly improve the main entrance to Leeds station.
Preliminary works on Bishopgate Street and Neville Street, near to the station, began three weeks ago, with the aim of creating a safer and more pedestrian-friendly environment outside of one of the busiest stations in the north of England.
Coun Helen Hayden, Executive Member for Infrastructure and Climate, said:
“Removing through-traffic from City Square is a long-held ambition of ours, and already it feels less car-dominated and a more inviting place for pedestrians and cyclists.
"Delivering these works will make the city centre even safer, and more friendly and inviting for all who live, work or visit.
“The works outside the station are also needed sooner rather than later if we are to accommodate the continuing increase in passenger numbers at the railway station."
Alongside work to remove through-traffic from City Square which is due to start later this year, and Boar Lane works nearing completion, the overall impact will be an even safer place to live and work, and an even more attractive and vibrant destination to visit.
This will also help boost the city’s economy, attract more investment into Leeds, and put local communities within easier reach of jobs and opportunities.
At the same time Leeds council is also improving the road network outside the city, so people can get around easily without travelling through the city centre.
Bishopgate Street and Neville Street have both been reduced to single lanes in recent weeks to allow for preliminary works to be carried out ahead of major improvements to the main entrance to Leeds station.