Technical advisors are to be appointed later this year to examine the potential greenway from Tralee to Listowel.
Transport Infrastructure Ireland says €100,000 has been allocated to Kerry County Council for this section of the North Kerry Greenway.
The 27km stretch would link the Tralee-Fenit Greenway with the North Kerry Greenway from Listowel to Limerick.
This project is still at concept and feasibility stage, but the technical advisors would review all options in terms of costs, benefits, and environmental impact.
Any preferred option which they identify would progress to the design and environmental evaluation stage.
The TII was responding to a parliamentary question from Kerry Fine Gael TD Brendan Griffin.