Hasina, who is Rahman's daughter, will have a series of meetings on various issues including on enhancing rail, road and water connectivity.
The New Delhi Municipal Council (NDMC) arrived at a decision aimed at expressing a "friendly gesture" by circular motion.
"It has been decided to rename Park Street after founder of Bangladesh --Bangabandhu Sheikh Mujibur Rahman-- ahead of Sheikh Hasina's visit. This is like a friendly gesture as India shares cordial relations with Bangladesh," a senior NDMC official told PTI.
Rahman was the central figure in Bangladesh's liberation movement and served twice as the Bangladesh President. He studied law at Maulana Azad College in Kolkata and joined student politics there.
According to NDMC officials, while 12 of the council members including Chief Minister Arvind Kejriwal agreed to the proposal, AAP MLA from Delhi Cantt Surinder Singh refused to give his consent.
This is the fourth time that the NDMC has renamed a road in less than two years. In 2015, Aurangzeb Road was named as APJ Abdul Kalam Road. Race Course Road, where the Prime Minister's residence is located, was renamed as Lok Kalyan Marg last year.
The civic body had also renamed Dalhousie Road in the national capital as Dara Shikoh Road after the elder brother of Mughal emperor Aurganzeb earlier this year.
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