The Great Walk - the tenth to be created in New Zealand - will run from Blackball to Punakaiki, and would include an eight-kilometre side-track to the Pike River mine.
"The Pike29 Memorial Track will be a stunning addition to New Zealand's network of Great Walks," Dr Smith said in a statement.
"The scenery of the limestone gorges of the Pororari Valley combined with views of the Tasman Coast, the Pancake Rocks, and the Southern Alps from the Moonlight Range will make it a spectacular track.
"These natural features, combined with the mining heritage sites up Blackball Creek and the information centre on the Pike disaster, also make for an experience of history and remembrance."
Pike River Families Group Committee spokesman Bernie Monk said victims' families were very supportive of the memorial, and worked closely with the Government on its development.
The Government will boost the Department of Conservation's budget by $10 million to cover the cost of constructing the walking and biking track.