Two-dimensional (2D) and three-dimensional (3D) instabilities in the wake of a circular cylinder placed near to a moving wall are investigated using direct numerical simulation (DNS). The study covers a parameter space spanning a non-dimensional gap ratio ($G^{\ast }$) between 0.1 to 19.5 and Reynolds number ($Re$) up to 300. Variations in the flow characteristics with $Re$ and $G^{\ast }$ are studied, and their correlations with the hydrodynamic forces on the cylinder are investigated. It is also found that the monotonic increase of the critical $Re$ for 2D instability ($Re_{cr2D}$) with decreasing $G^{\ast }$ is influenced by variations in the mean flow rate around the cylinder, the confinement of the near-wake flow by the plane wall and the characteristics of the shear layer formed above the moving wall directly below the cylinder. The first factor destabilizes the wake flow at a moderate $G^{\ast }$ while the latter two factors stabilize the wake flow with decreasing $G^{\ast }$. In terms of 3D instability, the flow transition sequence of ‘2D steady $\rightarrow$ 3D steady $\rightarrow$ 3D unsteady’ for small gap ratios is analysed at $G^{\ast }=0.2$. It is found that the 3D steady and 3D unsteady flows are triggered by Mode C instability due to wall proximity. However, the Mode C structure is not sustained indefinitely, since interference with the shear layer leads to other 3D steady and unsteady flow structures.