Minister for Transport Noel Dempsey has allocated €1.6 million worth of funding to Mayo County Council for the building of a cycle and walking amenity.
The 17-kilometre route between Newport and Mulranny in Mayo is to be developed as part of the National Cycle Network predominantly along the Midlands Great Western Railway Line.
The development was made possible after local landowners agreed to allow access to their land during for the construction period.
Mr Dempsey said the route has the potential to become "very significant" tourist attraction.
"I want new routes like this to help re-engage people with cycling and help promote a shift from the car to more sustainable forms of transport," he said. "This is one of the necessary steps to establishing a culture of cycling in Ireland."
According to the Department of Transport, the route will be built to the best international standards. The Department is to fund €1.28 million of the total cost.
The rest will come from the department of rural and gaelteacht affairs, Mayo County Council and Fáilte Ireland.
The route is part of a plan to link Achill and Westport with 46-kilometre of traffic-free cycling and walking route.