The news was announced at a meeting of the town commissioners earlier this week.
The closure is due to take place between 29 April and 6 September.
It comes after a public survey which showed 65% of respondents supported the idea of creating an open space in the town centre.
MHK for the area, Jason Moorhouse has called it a "momentous decision" but added that local traders are concerned it could impact business.
He added: "The more we can do to make this plan work and to support local businesses, the better it will be for everyone".
Family's appeal to bring brain-injured dad home
Island animal charity appeals for help after relentless bad weather
Further appeal for witnesses following incident in Ramsey
Speed restrictions planned for the coast road next week
Hundreds paid by cheque after MiCard scheme scrapped
No drone zone on Tynwald Day
Last orders at the bar as ‘Spoons puts counter up for sale
Liverpool Ferry Terminal has cost over '£100 million'
