Firms sending goods to York businesses will be urged to send their parcels to a central hub for delivery in a bid to cut air pollution and traffic.
The "last-mile" scheme will see parcels delivered from the hub on cargo bikes and on foot to city centre firms, City of York Council said.
The nine-month pilot scheme is set to begin in September, the authority said.
In 2019, the council announced a Climate Emergency and set an ambition for York to be a net-zero city by 2030.
The Local Democracy Reporting Service said the council had undertaken a feasibility study and wanted to sign up York businesses and operators such as Amazon, Royal Mail and Hermes to the trial.
Councillor Andy D'Agorne, executive member for transport, said the council regularly discussed "the constraints of a tight city centre".
He added: "Increased last-mile delivery is certainly something I think the city is going to welcome and benefit from."
Labour's transport spokesperson, Councillor Rachel Melly, said the council looking at ways of reducing carbon emissions was "long overdue".
She said: "Freight accounts for one third of all transport carbon emissions and van traffic has doubled in the 25 years leading up to 2019."
City of York Council has been given £285,000 by the Department for Environment, Food and Rural Affairs for the project.
The authority said it had identified one of its own buildings, 107-109 Walmgate, as a base for the hub to be used in the pilot scheme.
The results of the project were expected to be considered at the end of 2023, according to a council report.