The work is part of a broader package of changes to improve traffic conditions along the Princes Highway put forward by Transport for NSW last year.

Transport for NSW had offered up traffic solutions for both Bulli and Thirroul, however the changes planned for Thirroul were later rejected.

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Among the changes in Bulli is an extension of the clearway hours to 6.30am to 9am northbound and 3-6pm southbound on weekdays.

The southbound clearway will also be in place on Saturdays to 11am-1pm.

Businesses along the strip have raised concerns that the loss on parking could see some of them forced to close their doors.

However, a Transport for NSW spokesperson said there would be no overall loss of parking in the suburb.

"All parking impacted by the extension of clearway times will be offset with permanent spots and these changes will result in a minimum increase of 15 parking spaces during peak travel times," the Transport for NSW spokesperson said.

"New parking spaces and car park upgrades will be provided on Railway and Station streets.

"Once those parking offsets are in place, the extended hours on existing clearways will be introduced between Station Street and Park Road."

Other changes that form part of this stage include creating a no right turn into Station Street from the Princes Highway for northbound traffic and a row of 90-degree parking along the eastern side of Railway Street.

Parking on the western side of Railway Street will be removed to allow for traffic to pass in both directions - the original plan was to make it a one-way street.