The Fiordland Trails Trust is holding a public presentation of the alternative route at its annual meeting on October 19.
At present, to complete the full 28km Lake2Lake Trail, users need to travel on State Highway95 for 2km.
A proposed route that would eliminate the need for that is edging closer to reality.
Trust chairman David Boniface said construction of the trail started in 2015, and since then it had continued to grow in popularity among bikers, walkers, runners and other off-road trail users.
However, one of the middle sections had not yet been completed, requiring users to travel on the highway which created a health and safety risk.
The trust wanted the trail to go through part of the Fiordland National Park, but the park management plan does not allow for biking within it.
The new proposed route would avoid the national park but would still offer trail users a high-quality scenic experience, eliminating the need to travel on the state highway.
Tagged as leg 5 of the Lake2Lake Trail, the section will run from Balloon Loop to Supply Bay Rd, connecting Te Anau and Manapouri through one off-road trail.
Mr Boniface said it was exciting to have a way forward.
"As a trust, we are very conscious of the health and safety risk posed by the requirement to travel on the road for trail users who want to complete the full route from Te Anau to Manapouri or travel in the other direction.
"While this alternative route was not our initial plan, we are committed to the new way forward and look forward to progressing with the work required to make it possible."
While the alternative route for leg 5 would require resource consent, and Department of Conservation and landowner permissions, the trust was confident it was the right way forward.
"The recent impact assessment report highlighted significant positive economic and social impacts of the Lake2Lake Trail, and we have no doubt those benefits will only increase once the trail is complete."
