The change comes after opposition from artists.
Mayor Michael Bloomberg's administration had proposed new rules that dramatically capped the number of art vendors in some parks.
The rules would have allowed just 81 vendors in Union Square, Battery Park, the High Line Park and parts of Central Park. About 300 vendors work there now.
The art vendors are popular with tourists. But the city says those parks have become too crowded.
Several hundred people protested at a hearing on the proposal in April. The city revised the rule this week, adding about 40 spots in Union Square and Central Park.
It takes effect July 19.
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