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Surpluses in several council budgets will be pulled together so that another section of the shared path around Otago Harbour can be built in the next year.
The section of cycleway/walkway will link Wickliffe St with the existing shared path on Magnet St.
The work was initially to be part of the realignment of State Highway 88 around Forysth Barr Stadium, but was separated from that while property negotiations continued for the land where part of the section of cycleway was intended to be.
The negotiations with the property owner, Port Otago, and its tenant, Z Energy, are pending final agreements.
A report to councillors considering the council's 2013-14 budget said that during negotiations for the land required it became clear that the cost of the property and fencing and lighting was going to be about $307,000 more than expected.
Michael Harrison, of the transportation operations department, said staff had since identified four transportation operations that had uncommitted budget and recommended the uncommitted
money be applied to the project so it could be done in 2013-14.
The cycleway had been a vital component of the SH88 project and had been the deciding factor that tipped the whole project into favour with NZTA for funding, he said.
The path would be safer for cyclists and walkers and would aid pedestrian access to the stadium from the industrial area where many people parked when events were run.