The latest addition to the Hastings Rotary Pathway from Blackbridge to Clifton is expected to be finished by Christmas.
Construction will start next month and connect to the existing 57km of Rotary Pathways from Havelock North to Black Bridge.
TSB Bank has made a substantial donation so a bridge - to bear its name - could be built over Grange Creek, near Haumoana.
LHT engineers donated their time for bridge-design work.
The balance has been contributed by Rotarians, the Hastings District Council, the Hawke's Bay Regional Council and local charities, including the Eastern and Central Community Trust.
Regional council operations group manager Graeme Hansen said the council had been helping with the design work, including the cycle bridge across the Grange Creek.
Eventually they hoped to connect the pathway with a path along the Ngaruroro stopbank.
The new pathway and the existing Rotary Pathway from Havelock North to Black Bridge would form a significant part of the New Zealand Cycleway route in the Tukituki River valley which would eventually circle Te Mata Peak and Cape Coast.
Prime Minister John Key was in Hawke's Bay last week for the signing of the $1.89 million deal between the council and the Ministry of Tourism.
Mr Hansen was optimistic that the council would start building its sections of the cycleway before the end of the year
"Hopefully, construction of the first section should start by November," he said.
The Rotary Trust expected the Black Bridge to Clifton section of the pathway would be one of the most popular and spectacular sections of the pathway with its views of Cape Kidnappers and its cafes, wineries and coastal views.