The highly-anticipated Bethania to Logan Village Rail Trail will connect communities and provide a new recreational offering for families.
The Queensland Government has pledged $3.5 million towards the $7 million Bethania to Logan Village stage of the project.
Logan City Council will honour its promise to match the state's contribution.
The new trail stage will link with the existing Logan Village to Yarrabilba Rail Trail, built on a spur line of the de-commissioned Bethania-to-Beaudesert rail corridor.
City Lifestyle Chair, and Division 4 Councillor Laurie Koranski said the popular walking, jogging and cycling route would be welcomed by residents.
"This is an exciting project that provides a lifestyle and economic boost to the areas it connects," Cr Koranski said.
"The Logan Village to Yarrabilba Rail Trail has been well supported since it opened and I know people will enjoy this latest stage.
"Council can now begin consultation with the community and I look forward to hearing feedback regarding this exciting project."
Division 6 Councillor Tony Hall said the trail would increase recreational options for Bethania residents.
"Whether you're cycling or out for a weekend adventure with friends or family, this new corridor will be a great way to get outside and enjoy nature," Cr Hall said.
"Attractions like this boost the liveability of our suburbs and provide practical non-vehicle pathways to get around."
Member for Logan Linus Power said the project is another great attraction for the region.
"Funding from the Queensland Government announced in the recent State Budget will enable the next stage of this this great project to get underway," Mr Power said.
"The trail will attract people to the City of Logan and the local economy will also prosper by connecting more people with the shops, businesses and services along the way."
Logan City Council's record $1.014 billion 'Building on today for a brighter tomorrow' included a $241.5 million investment in roads, drainage and transport infrastructure such as cycleways and pathways.