The area in question stretches from the front of the pub to the edge of the road and is owned by Dublin City Council.
But it has long been a busy thoroughfare as well as being a popular haunt for sports fans when attending matches at the nearby Aviva Stadium.
Council bosses intend formally to relinquish ownership of the square, meaning it will come under the control of the pub's management.
The pub has lobbied the council to purchase the deeds of the land, which it says has been used by its customers for 20 years.
However the deal with Slattery's has alarmed some local residents, who claim that privatising the pavement will affect the public's right of way.
In a letter to Michael O'Neill, executive manager at Dublin City Council, the Bath Avenue and District Residents Association (BADRA) said the move would be "most unfair".
"This section of forecourt is one of the few public open spaces in our area. We strongly believe that the public right of way should be maintained for residents now that ownership has been established," the letter states.
"We feel that it would be most unfair and not in the best interest of the local communities to take away their right to use this land to walk on.
"Indeed, we think that this area should be restored to the general public."
The piece of pavement is always full of sports fans prior to matches at the nearby Aviva Stadium.
The owner of the pub, Irial Slattery, said he has no intention of closing the pavement to the public.
"My customers have used this area for years. I have no intention of putting up a fence or anything like that."
Dublin City Council also emphasised that the handover of the path will not affect the public's ability to pass the pub and cross the street.
While the majority of the pavement will be handed over to the pub, the council is witholding a section for a public footpath.
"A substantial part of the area in question has been used as a seating area for patrons of the premises. Notwithstanding that, a public right of way exists over it," the council said.
The upgrade works must be agreed and commissioned by Dublin City Council's Roads Maintenance Division. The decision was approved by councillors in the area last year.
The city council confirmed that BADRA had objected to the decision and will now be given a hearing.