Previously, there had only been enough funding for the first option of three proposed by the Central Otago District Council for the underpass below State Highway 8.
Option one would have passed under SH8 north of Hazlett St, but public feedback supported option three, which would be built under the highway from the Albert Dr laneway.
Council infrastructure services manager Jon Kingsford said more certainty followed ''positive'' talks with representatives of the New Zealand Cycle Trail and the New Zealand Transport Agency.
''It's not a done deal but ... I can say all options are on the table and all can be constructed in a reasonable timeframe.''
Following public feedback on potential options for the underpass, a report was being prepared for council members to select a solution.
It was hoped to be presented by the end of the year.
Mr Kingsford expected it would be 18 months ''at the outside'' before construction started.
The council had received about 50 responses on proposed options for the underpass, from a ''reasonably good'' cross-section of the Clyde community.
However, feedback was ''nowhere near'' about 700 submissions the council received to the annual plan, regarding the underpass, earlier in the year.