A new 20mph speed limit zone is being considered for the city centre.
Transport secretary Louise Haigh MP said judgements on road calming and safety schemes in England should be left for communities rather than central government.
The former Conservative Government had sought to introduce stricter policies around low-traffic neighbourhoods and 20mph speed limits.
READ MORE: Labour vows to scrap 20mph limit brought in on Southampton high street
This included draft statutory guidance published earlier this year that stressed the need for engagement with residents and local businesses before bringing in changes.
Speaking on the Streets Ahead podcast earlier this month, Ms Haigh said decisions should be made at a local level and “not dictated to or stroked up by the centre”.
She gave support for local authorities to introduce schemes but said it had to be done with communities.
Cllr Eamonn Keogh, Southampton City Council’s cabinet member for environment and transport, said: “We are pleased with the transport secretary’s clarification on this issue, as we believe that such decisions should be taken locally to ensure that local people’s views are heard and that local circumstances can be taken into account.
“In Southampton, the 20mph zones that have been implemented so far have come forward at the request of the local communities where they are located.”
Earlier this summer, council leader Cllr Lorna Fielker announced the administration’s intention to return Hill Lane and Shirley Road to a 30mph limit just two years after the rollout of 20mph limits.
Providing an update, Cllr Keogh said the local authority was in the process of preparing a formal public consultation on revising the 20mph speed limit on parts of the two roads.
He said this would allow the council to “gauge the overall view of residents following anecdotal feedback” before a final decision is made.
The transport cabinet member added the Labour administration was also “evaluating” the introduction of a new 20mph zone in the city centre.
Existing 20mph limits in the city centre include at Old Town, Hanover Buildings, Pound Tree Road, Vincent’s Walk, Above Bar, Northam Road and St Mary’s Street.
Specific information on where a new zone could be introduced was not disclosed.
Cllr Keogh said: “Our long-term transport plan set out to make Southampton a place where people can easily and safely get around.
“Lower speed limits are one of the tools that can help to make the city a safer place for everyone to travel, working alongside projects like safer routes to school, active travel zones and safer roads.
“The main benefit of the 20mph zones is that driving at 20mph is a more forgiving speed when people make mistakes, giving more time to react, and in the event of an accident the consequences are more likely to be less severe.”
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