Outdoor dining areas, wider footpaths and more trees will be added to the next stage of the Oxford Street cycleway, as the NSW government attempts to win over critics of the contentious bike path.

New concept images have provided a glimpse of what the 1.8 kilometre bike path linking Centennial Park to Taylor Square could look like once open to cyclists.

The second stage of the cycleway will feature public artworks, 50 new trees, additional lighting, seating and five additional pedestrian crossings.

As it finalises plans for the second stage of the cycleway, the state government is also set to splash $3 million on a street “activation fund” that will be used to support businesses impacted by construction works.

The funding pledge comes after public feedback on the second stage of the cycleway showed the community was bitterly divided over the project.

Of the 2300 responses received by Transport for NSW during public consultation, 51 per cent were opposed, with 42 per cent in support and 7 per cent neutral.

Critics of the project included The Paddington Society, which flagged concerns over lost carparking spaces and argued the cycleway would “impose a permanent physical barrier” along the street, discouraging the movement of pedestrians.

Dissatisfied residents have also launched legal action against the state government and council over the cycleway, citing safety risks posed by the so-called “island” bus stops on the route.