This follows an examination of the cycle lane set-up at Jocelyn Street and Chapel Street by Dundalk Town Council, the National Transport Authority (NRA) and a team of consultant engineers
As a result, road markings will be added, traffic signals will operate and the road will be widened to allow lorries and emergency vehicles down Chapel Street.
It has also been agreed that to monitor the situation when the schools re-open in September.
The National Transport Authority (NRA) has accepted an invitation from Dundalk Town Council to review the entire cycle lane programme in the town.
Town engineer Catherine Duff said the NRA review of the Chapel Street situation has brought about “valuable adjustments that we can now make to ensure that the junction is as safe as possible for all road users.
“There is always a careful balance to be struck in this type of work,” she said.
“Our objective is to make the town safer for cyclists and pedestrians.
“As a pilot project for the country, we’re delighted that the NTA has agreed to review the wider work and to contribute to our public awareness campaign which will run throughout the next school year.
“We are particularly encouraged by the interest shown by schoolchildren and their parents and their interest in the steps being taken to make walking or cycling to school a more viable and safer option.
“Nine local schools have joined this project, representing 4,000 children making daily school journeys during term.
“In the coming school year there will be cycle training on the routes delivered by Cuchulainn Cycling Club,” Ms Duff said.