The price tag for a trail between Mosgiel and Waihola could exceed $13 million if the preferred route is pursued.
Once finished, it would link up with the Clutha Gold trail and help connect Dunedin with popular recreational rides. Initially, the focus would be on a stretch between Mosgiel and Outram.
About 220 people attended a public meeting in Mosgiel last week, Taieri Trails Trust chairman Colin Brown said.
He described the mood as positive, although there was concern about potential reduced privacy for some residents.
Mr Brown expected a round of funding applications would be dispatched by Christmas.
There would also need to be further talks with landowners.
The area between Waihola and Dunedin has been described as a conspicuously missing link in Otago cycleway networks and a feasibility study picked up on the theme.
The proposed trail would "not only be a valuable amenity for the Taieri community as both a recreational and commuting option, but also provide significant economic benefit to the wider region by completing a critical link between Dunedin and the Central Otago and Queenstown Lakes ‘Great Rides’ trail networks".
It would also connect with a trail under development between Dunedin and Mosgiel, which is to feature two disused Victorian-era railway tunnels.
It is envisaged the first section of the Taieri trail, between Mosgiel and Outram, would run alongside the Silver Stream, down to the Taieri River, then head upstream and cross the river on a suspension bridge.
The trail would then follow the western bank of the Taieri to Outram.
The next priority would be developing a route north out of Waihola.
A stretch in the middle is where there is the least certainty.
The preferred option — running west along the base of the Maungatua Range to Berwick, then south to the junction of Lee Creek with Lake Waipori — would have scenic appeal and a price tag of about $5.3m.