The move is in line with PPG15 legislation, which calls for comprehensive reviews of conservation areas 'from time to time'.
If the changes go ahead they could significantly relax regulations against construction in large areas of the Square Mile, which were last reviewed in 1991.
Most notable of the areas to potentially lose its protected status is the east side of Chancery Lane and Queen Street, which is hailed, alongside King Street, as the only noteworthy new street laid out in the City after the Great Fire of 1666.
The decision to remove conservation area status means there will no longer be the stringent constraints on redevelopment there once were, allowing possible buildings of historical interest to be lost.
Breda Daly, of the City of London's planning office, said: 'We felt it was time to reconsider the conservation boundaries in the City.
'We worked in line with principal legislation, which came into effect in 1990, and with the PPG15.
'We also had guidance from English Heritage, and considered all areas very carefully, to an end result which we believe is fairly well balanced.'