The half-mile strip, now part of Van Nuys, is bordered by the 405 Freeway, Hazeltine Avenue, Oxnard Boulevard and Burbank Boulevard.
Hundreds of residents and business owners signed the name-change petition.
The proponents say many businesses and shops they use and schools their children attend have Sherman Oaks addresses.
Back in 1961 the area used to be called Sherman Oaks until the U.S. Postal Service gave it a Van Nuys zip code.
Opponents of the name change say it will hurt the image of their community and they worry that other Van Nuys neighborhoods would be re-named.
The issue now goes to the full city council for a vote, perhaps as early as next Tuesday.