The popular Under Wraps cafe in Macrossan Street has been targeted by Council and State Government officers who have declared the eatery's outdoor dining area a safety concern.

Under Wraps' owner Wayne Stapleton was shocked when he received a letter from Council giving him until 30 June to comply with orders to remove a large section of his seating.

According to the letter, Council sought the State Government's Department of Transport and Main Roads' (DTMR) advice on Mr Stapleton's application to have a permanent shade structure built where free-standing umbrellas are currently located.

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The application was rejected, but in addition he was advised "...footpath dining has encroached over the pedestrian blister island. In the interests of pedestrian safety, the department asks that Council make arrangements to have footpath dining relocated back to in line with the footpath awning."

Mr Stapleton immediately contacted Division 10 councillor Julia Leu, saying that the decision would cost him 50 per cent of his trade.

"I have barriers up for the safety of the people crossing and containing the area for the diners," the letter from Mr Stapleton read.

"We live in an area were (sic) alfresco dinning is everywhere. I’m gutted this is happening and wondering how we will work to fix this matter."

In the letter to Cr Leu, Mr Stapleton highlighted that the area either side of the pedestrian crossing was, in fact, paved by the previous Council specifically for outdoor dining.

He said urgent action was required to avoid having to move to another premises or close his business altogether.

"I’m just a small business owner trying to survive in the tough times of Port Douglas."

Mr Stapleton will meet with Council on Friday morning to discuss the issue and hoped for a positive resolution.