A $81,847 state government grant, announced by Northern Tablelands MP Adam Marshall, will be matched dollar-for-dollar by Inverell Shire Council to see $163,694 spent on constructing the new path along Arthur Street.

"A decade ago Inverell had few to no paths around town, but now you can walk, run or ride almost anywhere around town without leaving the concrete," Mr Marshall said in a statement.

"Currently the town-wide cycleway is 16 kilometres in length and connects Inverell's CBD to its park and river lands, schools and sporting fields.

"Over the next month council will continue its extension of the path from Ross Street at Inverell Public School around the corner onto Arthur Street, with a further 210 metres being added.

"It's great to see Inverell Shire Council proactively trying to make it easier for residents to pop down to the local shops without jumping in the car, the smooth pathways in particular beneficial for those living with a disability and the elderly."

Mr Marshall added footpaths were important tool in improving the health of a community.

"People's lives are just getting busier but these flat, easy to access footpaths mean residents can pull on their joggers any time of day or night and set off without fear of injury or having to run on the road with traffic," he said.

"The Active Transport Program was established so the NSW Government could work with councils to make walking and cycling around communities more convenient and safer - Inverell is doing a fantastic job embracing that.

"Inverell's town-wide Bike Plan already connects Lake Inverell on the eastern side of town with Inverell High School in the north and I look forward to council now linking up these sites to its residential areas."

The new shared pathway is expected to be complete by the end of the year.