The funding was announced by Member for Bathurst Paul Toole on Wednesday, December 11 and is part of the NSW Government's Infrastructure Grants program.

The boost will allow council to continue to build the shared pedestrian and cycleway along Farmers Creek which includes two creek bridges, 850 metres of shared cycleway and 732 metres of off-road pathway.

Lithgow City mayor Cr Ray Thompson said the funding would go a long way in finishing off what had already been started.

"At the moment we go from the Information Centre right around past Conran Oval all the way around the Glanmire field with a bridge and it will continue down Farmers Creek as far as Ladiley Street and then maybe further.

"We will use the money to take us as far as we can," he said.

Cr Thompson said the shared cycleway was a benefit for Lithgow with more and more people using it.

Read more:

"I don't see a lot of cyclers but I do see walkers which is good for the community.

"They can get out on a nice even path, it's suitable for the elderly especially, without having to worry about rolling or twisting an ankle.

"It's a nice safe place to walk," he said.

Member for Bathurst Paul Toole said he was pleased to be able to announce the funding which would help boost recreation for Lithgow.

"Recreation is important for quality of life for local residents and the cycleway will encourage community engagement in the environment and healthier lifestyles.

"It will also help to attract visitors to the city," he said.

He said the Infrastructure Grants program funded important projects across the state and the NSW Government.

"The projects they're delivering will boost participation in sport, recreation and arts, social inclusion and disaster resilience - making a real difference in people's lives across NSW."

While you're with us, you can now receive updates straight to your inbox from the Lithgow Mercury. To make sure you're up to date with all the news, sign up here.