The Maori land owners' objections include concerns that cyclists or walkers might not respect burial grounds and other waahi tapu sites the trail passed.
The Crown originally took over 100 acres - more than was needed for the railway - under the Public Works Act but when the railway became redundant over 40 years ago, the land was never returned to iwi, Mr Wihongi said. That is the subject of a pending Waitangi Tribunal hearing, expected next month.
Mr Wihongi said that despite several meetings between the parties, the FNDC refused to budge, even though the landowners have suggested two alternative, very scenic routes.
"They know our stance," he said. "We don't want it through our land because if the track is open we can't stop anyone coming through. It provides easy access to farmland and privately owned bush. It goes past our homes and urupa. There's no guarantee the visitors will respect our waahi tapu.
"Then there is the matter of the unresolved Waitangi (Tribunal) hearing."
The council had agreed to build a three-metre-high fence to offer privacy where the trail passed private dwellings, FNDC communications manager Richard Edmondson said.
No date had been set to issue a trespass notice and the council wanted to meet landowners again in the hope agreement could be reached.
At last week's meeting Kaikohe Hokianga Community Board chairman Wyn Stevens said the council should appeal to the Government for support. Mr Stevens said the trail was of national significance and therefore Government backing was required to resolve issues of access to Crown land.
The FNDC negotiated with landowners between Horeke and Okaihau to allow the cycle trail across land where there was no rail corridor.