The new tracks are expected to be ready in time for the November event.
The Contact Lake Taupo Cycle Challenge is part of the International Cycle Union's Golden Bike series which takes in other races around the world.
Its events include the Tour de Flanders in Belgium and L'Ariegeoise in France.
Event director Kay Brake said the Taupo event was like a festival, with entertainment off and on the course.
"As well as participants enjoying one of New Zealand's most picturesque cycling events, we'll also be bringing a real festival flavour to the weekend with live entertainment and bands."
The event has a total of 12 different challenges for a range of ages and skills.
Serious participants can tackle the 160km circuit of Lake Taupo on their own or they can join up in a relay with up to three others to complete the lake circuit.
Interested cyclists can enter the November 24 event online from this Sunday at www.cyclechallenge.com.