Taieri Trails Trust chairman Colin Brown said some landowners were now prepared to consider having part of the proposed trail come through their properties and this could lead to a new option for a section of it.
He was not yet able to say where the alternative route might run, as talks were continuing.
More information could be disclosed in the coming weeks.
Mr Brown and Dunedin Tracks Network Trust representatives Paul Coffey and Sarah Davie-Nitis made a presentation to the Mosgiel-Taieri Community Board on Wednesday.
The board agreed to give a $2000 grant to the Taieri trail projectto assist with pre-build costs and design.
It is intended the full trail will run from Mosgiel to Waihola, linking up with the extended Clutha Gold Cycle Trail, and the stretch from Mosgiel to Outram would be the first section in a three-stage programme.
A map in a feasibility study released last year shows an indicative route that runs by the Silver Stream from Mosgiel and at one point crosses the Taieri River before heading towards Outram.
It was suggested at the meeting the alternative route could be easier and cheaper to complete.
The trust has so far obtained grants collectively worth more than $50,000 to get the project moving.
This included $36,800 of funding from the Lottery Grants Board for initial feasibility work and grants from Rotary.
