Lake Macquarie council plans to acquire land off Belmont TAFE to clear the way for its planned Fernleigh Track extension from Belmont to Blacksmiths.
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The council is expected to green light the purchase of a disused parcel of land at Monday's ordinary meeting.
Staff have recommended council proceed with the $320,000 purchase, despite an internal evaluation setting a maximum price of $290,000 for the land.
The $320,000 sale price is the minimum TAFE will accept for the land following a third-party evaluation.
The two parties previously agreed to the creation of an easement through the land, but TAFE later sought council's interest in purchasing the land necessary for the shared path, along with the remainder of the environmental conservation zoned land within the lot.
The acquisition will negate the need for council to create an easement and ensure access to the site when the path's construction begins.
It pitched the track, an off-road shared path including an elevated boardwalk past Belmont Lagoon, for a $7.7 million state government grant last September.
The application was successful in being shortlisted and a business case was submitted earlier this year.
The council is awaiting a decision on the funding application, which outlined an overall project cost of $11.3 million.
Lake Macquarie mayor Kay Fraser said the link would create "one of the state's great coastal walks and rides" by enabling off-road cycling from Murrays Beach to Adamstown.
"More than 200,000 people a year use the Fernleigh Track," she said last year.
"This pathway is certain to increase that number, contributing to a healthier lifestyle for residents and visitors and enhancing active transport links."
The path has long been considered a crucial missing link and was previously identified by the Newcastle Cycleways Movement as one of its top priorities for cycling infrastructure in the region.
Its construction will allow cyclists to avoid riding along the narrow shoulder of the Pacific Highway between Blacksmiths and the Fernleigh Track in Belmont.
Newcastle Cycleways Movement's Michael Golden labelled the path a "priceless asset" when the project was unveiled last year.
"Having a dedicated cycleway all the way into Newcastle is so inviting," he said.
"It really encourages people to get on their bike.
"Being able to cycle 27 kilometres off the road into a major city in Australia is really unheard of."
