Acting council group transport manager Richard Saunders said the council was looking at linking the West Harbour shared pathway with the Dunedin Railway Station by building a shared pathway along the rail corridor.
Part of the investigation involved discussions with Kiwirail.
The plan for the link comes after the council pushed back work on the problem-plagued South Dunedin Cycle Network in favour of central Dunedin cycleways.
Spokes Dunedin secretary Jon Dean said the plan was a "very positive step'' towards Dunedin having one of the best "one-day cycle networks'' for tourists in New Zealand.
He envisaged a future - when both the West Harbour and Otago Peninsula cycleways were complete - where tourists could hire bikes from the railway station and cycle to Harington Point, catch a ferry to Port Chalmers and then cycle back to the railway station again.
"This definitely helps realise that kind of vision towards having world class cycling facilities in the centre of the city.''
It would also be great for commuters and Dunedin recreational cyclists, who would able to avoid cycling on the road.
"It makes it a very direct and efficient route with very minimal safety problems.''
He praised the council's renewed focus on "quality over quantity'' when it came to cycle infrastructure.
Spokes did not have a view on the council prioritising central city cycle infrastructure over South Dunedin.
"What really matters to us is what they build is high quality and is going to be used.
"Whether or not that was in South Dunedin, Central Dunedin, or North Dunedin is not what we focus on.''
Mr Saunders did not answer questions about when construction could start on the link and said it was too early to comment on a "route assessment'' of what other cycle infrastructure was needed in the central city.
"Dunedin City Council staff have not yet reviewed the assessment so we are not in a position to release it at this stage.''
Earlier this year, the New Zealand Transport Agency announced that construction of the St Leonards to Port Chalmers section of the West Harbour cycleway would not start until at least 2018.
The project has had to go back to the drawing board because the initial design was estimated to cost more than the budgeted $6million to $10million.
