Cities now face critical challenges such as climate change, political unrest, and altering demographics, all of which underscore the importance of inclusive and effective public participation in urban development. While digital technologies and the rise of AI offer opportunities to improve participatory urban planning through scalable systems, real-time feedback, advanced visualization tools, and predictive capabilities, their adoption is fraught with difficulties, including steep learning curves, accessibility concerns, and financial constraints. To bridge the gap, this study suggests Hybrid Planner, a 'phygital' co-design method that combines design with physical paper cut-outs, digital 3D modeling, and data analytics to support citizen participation in the early stages of design. Reacting to the challenges of e-participation in urban planning, this approach seeks to understand how combining physical and digital tools can foster user engagement, encourage participants’ acceptance of design changes, and inform collaborative design decisions in early stages of co-creation.