The 20km stretch is expected to be finished by spring 2022.
Work will begin this summer on the Daingean to Edenderry stretch of the Grand Canal Greenway.
The 20km stretch is expected to be finished by spring 2022 at a cost of around 3.1m euro.
It comes as the transport Minister is announcing an extra 1.4m euro to extend the Kildare section of the route from the 12th Lock to Hazel Hatch Bridge.
Almost 70km of Greenway will be completed on the Grand Canal by the end of 2023.