Federated Learning (FL), a crucial advancement in smart city technology, combines real-time traffic predictions with the potential to enhance urban mobility. This paper suggests a novel approach to real-time traffic prediction in smart cities: a hybrid Convolutional Neural Network-Recurrent Neural Network (CNN-RNN) architecture. The investigation started with the systematic collection and preprocessing of a lowresolution dataset (1.6 GB) derived from real-time Closed Circuit Television (CCTV) traffic camera images at significant intersections in Guntur and Vijayawada. The dataset has been cleaned up utilizing min-max normalization to facilitate use. The primary contribution of this study is the hybrid architecture that it develops by fusing RNN to detect temporal dynamics with CNN for geographic extraction of characteristics. While the RNN's recurrent interactions preserve hidden states for sequential processing, the CNN efficiently retrieves high-level spatial information from static traffic images. Weight adjustments and backpropagation are used in the training of the proposed hybrid model in order to enhance real-time predictions that aid in traffic management. Notably, the implementation is done with Python software. The model reaches a testing accuracy of 99.8% by the 100th epoch, demonstrating excellent performance in the results and discussion section. The Mean Absolute Error (MAE) results, which show a 4.5% improvement over existing methods like Long S hort Term Memory (LS TM), S upport Vector Machine (S VM), S parse Auto Encoder (S AE), and Gated Recurrent Unit (GRU), illustrate the efficacy of the model. This demonstrates how well complex patterns may be represented by the model, yielding precise real-time traffic predictions in crowded metropolitan settings. A new era of more precise and effective real-time traffic forecasts is about to begin, thanks to the hybrid CNN-RNN architecture, which is validated by the combined strengths of FL, CNN, and RNN as well as the overall outcomes.