More than 4.6 million passengers used the city centre station between 2022 and 2023.
But the layout of the five platforms at the Grade II listed building limits the length of trains that can call there.
Network Rail has proposed remodelling the station to have three longer platforms to increase capacity, allowing for an extra 120 seats on trains calling in.
The changes would also see improvements to track and signalling to stop the bottlenecks caused by trains having to wait at nearby Deansgate station until platforms at Oxford Road are clear.
Network Rail said this would bring wider benefits to the reliability of trains across the region, with many services passing through the station.
The plans would also see step-free access, wider platforms, and improved lifts introduced to improve accessibility.
An initial consultation on the plans will be open until 28 February, with Network Rail hoping to submit finalised plans by spring 2026.
Craig Harrop, regional director for Northern, said he would encourage residents to submit their views as Manchester Oxford Road was an “iconic station” that was “one of the main gateways to the city”.
