Waikato District Council chief executive Gavin Ion says the project was great news for locals and visitors as it provides a safer route to the beach for walkers and cyclists.
"It also links in with the Raglan community's aspirations for their town, including the Local Area Blueprint, in which extending the local walking and cycling network was identified as a very high priority."
Before construction gets underway, the council needs to consult the community and sign a funding agreement. The shared path is expected to be completed within 18 months of the signing of the funding agreement.
The council says the Town2Surf cycleway will reduce traffic congestion on Wainui Road and free up parking space at the reserve and in town. The path is also said to improve the beach's accessibility for people who come to Raglan via public transport and make cycling and walking safer along the way due to the separation of the path and the road.
The Town2Surf shared cycle path work is part of a district-wide footpath improvement programme which includes a number of projects around the district over the next few years.
New connections are planned in Huntly, Tamahere and Tauwhare, Tuakau (River Road to Les Batkin Reserve) and Matangi.
The TIF has been set up to provide financial support for tourism-related infrastructure projects that support regions facing pressure from tourism growth.