"Nowadays the air in Stockholm causes babies to have sick lungs and the elderly to die prematurely. It is a completely unacceptable situation," Lars Stromgren, the city's vice-mayor for transport and urban environment, said in a statement.
"We need to limit the harmful exhaust gases from petrol and diesel cars."
The area is located in the heart of Stockholm's shopping district and bustling with eateries and office buildings.
The ban, which will go into force on December 31, 2024, is being introduced "in an area with a lot of pedestrians and cyclists, where the air quality needs to be better," Stromgren said.
"This is also a part of the city where we see that there is a lot of interest in a faster electrification, with actors that can spearhead the transition," he said.
Exceptions will be made for police cars, ambulances and other security services, the statement said.
"Electric vehicles also contribute to lower emissions and less noise, which means more deliveries can take place at night. That will reduce congestion on the roads in the city centre," Stromgren said.
The measure is a first step, with plans for the ban to be extended at a later date.
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