The $5.7 million project will extend the popular bikeway from Mount Torrens to Birdwood, adding around 6km to its overall length.

The Federal and State governments are each contributing $2.6 million to the project, and Adelaide Hills Council, which will build the bikeway's fourth stage, is putting in $500,000.

The Amy Gillett Bikeway is a cycling, walking and horse-riding sealed bitumen track that runs 17km through the Adelaide Hills and follows the course of an old rail corridor.

It is named after Amy Gillett, a member of the Australian women’s cycling team who was tragically killed while training in Germany in 2005.

Stage one of the path was completed in 2010, and stages two and three in 2014, taking it from Oakbank to its current end point in Mount Torrens at Oval Rd.

Adelaide Hills Council Acting Mayor Nathan Daniell said the track was popular with cyclists, locals and families.

“This is an incredibly important and much-loved asset for our community with the added strategic outcome of attracting tourism and providing economic benefit to townships along the way,” Mr Daniell said.

For more information about the bikeway and to access a map, visit the Adelaide Hills website.