The agency wants to appoint a contractor to carry out work on a 2km extension of the existing SH88 cycleway from Maia.
The stand-alone cycleway is planned, eventually, to run all the way through to Port Chalmers.
NZTA southern regional director Jim Harland said construction of the cycleway extension was estimated to take about five months.
"[This] represents a major investment in safer walking and cycling alongside SH88," he said.
The new path would connect with Dunedin via the cycleway around Forsyth Barr Stadium and also link to other cycle lanes around the city, Mr Harland said.
"The pathway offers considerable safety benefits for cyclists and walkers, who will no longer need to use SH88 that carries heavy vehicles to and from Port Chalmers container port."
Once completed, the cycleway will cross two sections of the harbour causeway, which has the main trunk railway next to it.
"The extension will provide a continuous 4.5km route for both commuters and recreational users; almost double the distance currently available," Mr Harland said.
Work is expected to start in the first quarter of next year, once a contractor has been appointed.
The NZTA is investigating how much it will cost to construct the remaining section of the path to Port Chalmers.
However, to secure design and construction funding it would have to compete against other, similar, projects around the country, Mr Harland said.
The NZTA has called for tenders for the project, with a contractor expected to be appointed before Christmas.
