Members of Falkirk Council's Leisure, Tourism and Community committee also backed plans to rename the area as the Arnothill and Dollar Park Conservation Area.
Falkirk Council's Policy and Resources Committee will have the final say on the proposals.
There will also be a further consultation on including extra homes in Garthill Gardens and Arnothill Gardens in the conservation area before a final decision is taken.
Conservation area status gives special protection to areas of historic or architectural interest.
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New developments in these areas are normally only granted planning permission if they can demonstrate that they won't harm the character or appearance of the area.
Councillor Adrian Mahoney, the Council's Convener of the Leisure, Tourism and Community, said: "Our built heritage is the first visible sign of the area's history and heritage and should be protected at all times. We have already carried out a number of conservation appraisals, leading to new guidance and enhancement opportunities within local communities.
"In the case of Arnothill, consultation has been extensive - and plans to extend the conservation area to include land around Dollar Park has been welcomed.
"We were delighted so many local people took part in this consultation exercise and thank them for their feedback."
Consultation with local residents included drop-in sessions, letters and questionnaires, publication of the draft appraisal and an online survey.
Fifty residents from 39 properties attended drop-in sessions along with ten from outwith the conservation area. Survey responses were received from 25 properties, Historic Scotland, British Waterways, the Scottish Civic Trust and Network Rail.
If the Council's Policy and Resources Committee gives its support, a Conservation Area Management Plan will be prepared for the area.
(GK)
