The scheme, which was launched back in July to coincide with the lifting of Coronavirus lockdown restrictions on the hospitality sector, include temporary permission for restaurants and cafes to set up tables and chairs outdoors, alongside "soft" road closures throughout the borough.
High-density hospitality areas across the City of Westminster - including Soho, Fitzrovia, Covent Garden and Marylebone - are covered under the measures.
Westminster City Council had been set to conclude the scheme at the end of this month, but will now continue in its current form until 31 October.
“This popular scheme has been a lifeline for the hospitality sector," says Westminster City Council Leader Rachael Robathan.
"We recognise the importance of our business community as being key to the successful economic life of the city.
"We’re working closely with our residents to support local businesses, the backbone of our communities, and will continue to do all we can to help them.
“That’s why we have decided to allow the extension of the schemes that we have in place to support al fresco hospitality for all businesses that wish to continue using them until end of October."
A total of 59 streets across Westminster are authorised to benefit from a combination of temporary timed closures that are primarily focused on evenings and weekends; widening of footways; and an extension of outdoor seating and private licenses.
They include the likes of Greek Street in Soho; Lisle Street in Chinatown; and Chiltern Street in Marylebone
"We will always put the health of our residents and visitors first whilst doing everything possible to support our city through these very challenging times," adds Robathan.
“We will keep working with residents, businesses and other key partners to identify local schemes that could benefit specific locations at certain times throughout the year in a safe manner.
"This could include supporting events such as Christmas fairs or al fresco dining at certain times where it suits an area and enjoys local support.”