The move is part of a £140,000 marketing drive to entice shoppers, put off by loyalist protests, road blocks and street violence, back into the city.
It was announced after traders and politicians held an emergency meeting to discuss the negative impact of the flags controversy.
Belfast Lord Mayor Gavin Robinson said: "Everyone knows the city has suffered in the past week or so but we are all keen to positively move forward and showcase the real side of Belfast for the remaining days of the Christmas season."
Some retailers have been critical of Belfast councillors for raising the emotive and divisive flags issue at such a critical trading period.
Last weekend they claimed to have lost millions of pounds because customers were put off by the planned picket by thousands of loyalists on what should have been one of the busiest shopping days of the year.
Stall holders at the continental market had been due to pack up on December 20 but the council said 80% of stall holders had agreed to stay open until Sunday, December 23.
Vacant sites may be filled with local traders from St George's Market.
Free parking spaces, street entertainment and rewards for shoppers have also been included in the latest drive to attract business.
Mr Robinson said: "A programme of street entertainment including musicians, street theatre and circus performers will bring the city centre to life around Donegall Place, Castle Place, Cornmarket and outside City Hall from this weekend through to New Year's Eve. This activity will be integrated with activities already planned by the major shopping centres at Castle Court and Victoria Square.
"It's all shaping up to be an exciting last 10 days for the city and we confidently believe any shopper who comes into the city centre next week is set for an enjoyable experience as the excitement of Christmas builds in Belfast."
Loyalists have been protesting over the decision by Belfast City Council to reduce the number of days the flag flies.
A number of elected representatives including East Belfast Alliance Party MP Naomi Long have received a death threat from loyalists.
Democratic Unionists Jeffrey Donaldson, Edwin Poots and Guy Spence have also been informed of threats, apparently from dissident republicans, after speaking out in favour of flying the flag.