The provincial government will contribute $290,880 towards constructing nearly a kilometre's worth of bike lanes along both sides of North Nechako Road.
The work is scheduled to go ahead this summer and is initially estimated to cost about $500,000.
It will consist of a 1.5-metre-wide lane on both sides of the road, running 930 metres from Foothills Boulevard to Rosia Road.
Last summer, 1.6 kilometres of bike lane was constructed along the road from Rosia to Toombs Drive at a cost of about $700,000.
Mayor Lyn Hall welcomed the news, which will significantly reduce the city's share of the cost.
"This project is also about making our roads as safe as possible for all travelers," Hall said.
The push for bike lanes along North Nechako dates back to 1990. In May, a petition with more than 1,300 names not only the North Nechako area but the city at large in support of the project was presented to council.
Kathleen Haines, one of the residents who presented the petition to council, also welcomed the news.
"It's a very positive thing," she said.
Over the longer term, she hopes to see the lanes extended right out to the city limit.
The funding came out of the provincial government's BikeBC program, which will distribute $3.7 million to 22 projects across the province.