The five-kilometre pathway - which will start at Bridges Hill Park at East Cessnock and finish at St Philip's Christian College, Nulkaba - will be funded under the NSW Public Spaces Legacy Program.

The project will also include a shared pathway linking Allandale Road to Nulkaba Public School, plus end-of-trip/mid-trip bicycle storage infrastructure, water bottle filling stations, seating and shelters.

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The 2.5-metre wide pathway will be able to be used by pedestrians, cyclists and wheelchair users.

Cessnock mayor Jay Suvaal said providing better connectivity through shared pathways is one of his key priorities as mayor, and he is looking forward to the project getting under way.

"The fact that people will be able to walk or ride safely into the Cessnock CBD from Nulkaba is just fantastic," Cr Suvaal said.

"It will also promote a healthier and more active lifestyle for those living in the area. Instead of always jumping in the car to get into town or to drop the kids to school, locals can consider cycling or walking."

Cessnock Bicycle Company owner Steve Whitby said he was "over the moon" about the funding announcement.

"This pathway is not just a win for cyclists, it's a win for generations of kids who can ride their bikes to school safely," he said.

"We'll use this shared path regularly to get from the CBD to the Werakata National Park and beyond, plus with the addition of support infrastructure it's a link that showcases what rail trails can do for communities looking for alternative mobility solutions.

"I'm looking forward to working with council to integrate this path into a network that encourages safe green mobility, whether that's on a bike or scooter or on foot - even rollerskates!"

Quotes are currently being sought for the survey and design of the pathway, and construction is scheduled to start mid-year once tenders have been awarded.