The program, called "Midtown in Motion," uses cameras and sensors to improve traffic flow from 42nd to 57th streets.
Right now, the transportation department monitors an area between Second and Sixth avenues. It has enabled the agency to remotely change traffic lights at 23 designated intersections.
The city will spend $2.9 million to expand east and west, to between First Avenue and Ninth Avenue.
Transportation officials say initial results indicate that travel speeds have been improved by 10 percent under the program, which was introduced last July.
Transportation Commissioner Janette Sadik-Khan said tuesday that it will be expanded from 110 blocks to 270.
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