A federal judge has upheld new regulations seeking to cap the number of art vendors allowed in Manhattan’s busiest parks.

Judge Richard Sullivan yesterday denied motions in two cases brought by street artists seeking to prohibit the Parks Department from enforcing the new rules.

The city administration has said the parks have become too crowded, but the lawsuit argued that farmers market and holiday vendors create more congestion in the parks than the artists.

City lawyer Mark Muschenheim said he was pleased with the decision, saying the rules reflect a careful balance between the rights of vendors and the public’s right to enjoy the parks.