At present, residents in those suburbs using the $2 Orbus service have to change buses at the Frankton Hub to move between their homes and the CBD.
Otago Regional Council public transport team leader Julian Phillips said the council had put in a "lot of work" behind the scenes to implement the direct service.
A proposal would be presented to the regional council in a fortnight for consideration.
"Pending their approval, and subject to remaining operational procedures, we hope to launch by the end of the year."
Mr Phillips said the route would run on weekdays during peak morning and evening travel time.
Queenstown Lakes Mayor Jim Boult said the council had lobbied extensively for that service to be introduced for most of this year and was "delighted" the regional council had listened.
"I think it's a really exciting development and it's one that I know the good folk of Lake Hayes Estate and Shotover Country will be delighted [about]."
However, a new bus rest stop is required in Queenstown for drivers on that route.
Yesterday, the full council voted to approve a recommendation that up to seven parks be removed from outside the its Gorge Rd office to establish the rest stop.
Mr Boult told the Otago Daily Times there was "no gain without a bit of pain".
"The trade-off to lose a few car parks as against [provision] of that service will, I think, result in many cars being off the road."
