The pathway project, allocated $830,000 to complete, was one of Mayor Ryan Palmer's seven notice of motions presented to the first council meeting of the year on Tuesday.

Cr Palmer sought the council's endorsement to construct the shared pathway along Nelson Bay Road in Fern Bay to connect the existing path at the City of Newcastle boundary, which was approved.

"Safety for children and the growing population is hugely important to the Fern Bay community, and to this council," Cr Palmer said.

"Plus, shared pathways are a great way to encourage healthy activities like walking, running and cycling while improving accessibility for people on mobility scooters. We're already building part of this path and it's time to finish the job."

In August 2019, Port Stephens Council endorsed funding for the construction of new shared paths in Fern Bay running from Bayway Village to the existing path network in North Stockton.

Shared paths are wider than standard footpaths and allow for both cyclists and pedestrians to pass safely, plus improve safety for mobility scooters users.

The project is the largest planned for Fern Bay, which borders the City of Newcastle local government area.

The "missing link" is the final section of the shared pathway, which will be constructed by Port Stephens Council along Nelson Bay Road from Fullerton Street in Fern Bay to Vardon Road.

The new pathway will be funded using a combination of developer contributions and the Port Stephens 2020 budget allocation.

Works are expected to begin June 2021 and wrap up July 2021.