A cycle lane is being planned to run alongside a mile and a half stretch of Ditchling Road in Brighton.
The proposed cycle lane is intended to improve links between Brighton and the South Downs National Park.
The cycle lane will be a gravel path to be shared with pedestrians and, at the northern end, will cross Coldean Lane and lead to and from Stanmer Park.
The money is to spent improving access to the national park by creating a network of cycle routes.
The Ditchling Road proposal has already attracted £100,000 from the Local Sustainable Transport Fund.
The council wants to make it easier for people to travel between Brighton and Hove and the national park on foot and bike and by bus.
People living in and around Ditchling Road are to be consulted about the proposals which the council said would also benefit the many runners who use the route.
Councillor Pete West, the chairman of the council’s Environment, Transport and Sustainability Committee, said: “This new safe and attractive route would complement our improving city cycle network and help meet the growing demand for cycling from people of all ages particularly children.
“What a wonderful way for them to get out to our fantastic new national park.
“We also anticipate that these proposals will have a positive impact on reducing speed and, crucially, road casualties in the area.”
Trevor Beattie, chief executive of the South Downs National Park Authority, said: “This is a great success for the South Downs National Park and for all those who love to walk or cycle through it.
“The South Downs is England’s most visited and most densely populated National Park and this investment is designed to provide a high-quality cycling experience for cyclists of all abilities and to complement and give access to the existing network of advisory and off-road routes.
“The national park authority has many plans to create new and safer routes, both for commuters and for people cycling for pleasure.
“Now we have the money to put those plans into practice.
“We will be working closely with the local highways authorities and other organisations to take full advantage of this major new funding.”
The council’s consultation starts next Monday (19 August) and runs until Sunday 8 September.
To take part, visit www.brighton-hove.gov.uk/ditchlingroadSDNP or call the transport planning team on 01273 290487 for more information.