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Up to $4.5 million may be spent on a new cycle system in central Dunedin.
The Dunedin City Council and New Zealand Transport Agency have developed a third option for a separated cycle lane along the city's two one-way streets which form part of State Highway 1.
If the council endorses further development of the options, each will be considered as business cases and one could then be chosen.
The council's infrastructure services committee will decide on Tuesday whether to push ahead with the project, enabling the NZTA to fund analysis of each option.
NZTA projects team manager Simon Underwood said analysis would cost between $80,000 and $100,000.
Construction of a new cycle system would cost $3.5million-$4.5million, he said.
Final costs and how they would be shared between the NZTA and DCC would be known later.
''Until now, we've looked at the functionality of separated cycle-lane options and sought feedback,'' Mr Underwood said.
''The business case analysis goes into a lot more detail about landscaping and streetscaping, core engineering such as pavement construction, traffic operations and a whole lot of other aspects.''
The main project development work will be led by the NZTA and concurrently the DCC will develop a parking management plan.''
It was estimated alternative parking would cost the council $270,000-$350,000.
Mr Underwood said the business case for each option could be reported to the council's infrastructure services committee in about 12 months.
Construction of an approved option could start mid to late 2015 ''at the earliest'', Mr Underwood said.
He did not know yet how long construction would take, but said it would be staged and designed to minimise traffic disruption.
The council and NZTA received more than 2000 submissions, as well as hundreds of survey responses, on proposals to improve the cycle network.
They developed the third option to better combine many of the submitters' wants and needs.
Cyclist fatalities and serious crashes on SH1 in central Dunedin sparked a widespread public call for improvement, prompting the council and NZTA to investigate options.
There was overwhelming support for a separate cycle lane.