Dunedin City Council acting group transport manager Richard Saunders said tenders were expected to go out this financial year, and a final design decision would need to be made by then.
Mr Saunders also said the council had made mistakes in its communication about design changes it had made on the project.
The issue has caused controversy since late last year when the council changed an earlier design, much to the chagrin of cycle advocacy group Spokes.
The changes emerged after the council organised a consultation meeting on a new design in December.
The design dropped a cyclist-only lane on part of the route, leaving a shared cycle-walkway the group said would lead to conflict between cyclists and walkers.
An on-road space for cyclists was on the shoulder areas of the road.
Spokes said at the time a 3m-wide cycle-walkway with a drop to the harbour on one side and a concrete barrier on the other was not safe.
The council responded the road was narrow, needed to be safe for all vehicles and an earlier design did not meet the safety objectives that were a condition of NZ Transport Agency funding for the project.
Last week, Spokes held a public meeting to discuss the issue.
Mr Saunders said this week the council, after the meeting last year when Spokes raised concerns, ''looked at those concerns''.
In February the council had a meeting with Spokes and the NZTA's national cycleway team, and sought comment from the organisation's national safety team.
''We want to make sure with the importance of this project for Dunedin we get this right.''
Since then, concerns Spokes had raised had been considered by the council's design team, in consultation with the NZTA.
The council would be in touch with Spokes once it decided on a response, but ''ultimately it will be a decision the council makes, and we are taking the feedback from NZTA on board very much in making that decision''.
The process had not stopped work continuing, as designers could add changes later within the width of the road, which was already decided.
Geotechnical and other work was also continuing.
However Mr Saunders said the discussions over the new design had ''an impact on the project timeline'', although what that would be was not known.
He said the council had ''got it wrong'' in terms of communication when it changed the design last year.
''We could have been a little more specific in the reasons why we were moving away from that 2013 design.''
''We'll take that on board for the future.''
With tourist operators, heavy vehicles and all sorts of other traffic on the road, the solution had to work for everyone.
''The numbers are only going to increase, and that means we are limited in the scope of what we can achieve.''
Mr Saunders said it was expected tenders would go out this financial year.