It is part of a $2.3m investment in the Great Rides which draw visitors to the regions, from the New Zealand Cycle Trail Enhancement and Extension Fund that provides up to $6m each year to extend or improve the 22 Great Rides.
The cost will be split between the Ministry of Business, Innovation and Employment (MBIE) and local councils over the five years from 2018 to 2022, with close collaboration with NZ Transport Agency and the local community.
The Hawke's Bay Trails was also one of the seven trails to receive funding from the Maintaining the Quality of Great Ride Fund (MGR) round 10.
A further $55,000 will go towards trail surface, signage and landscaping improvements at the Black Bridge underpass to improve user safety.
Hawke's Bay Tourism general manager Annie Dundas said it was "very pleased with this contribution and the opportunity to now improve the safety and size of our popular cycle network".
Hawke's Bay Regional Council cycle network co-ordinator Vicki Butterworth said it was great news.
She says the main safety benefits come from diverting cyclists away from busy, narrow roads, with a better, quieter experience for trail users.
The trails are funded and maintained by the Hawke's Bay Regional Council, Hastings District and Napier City councils.