The planned walking and cycling path, when complete, would run from Queen's Wharf, under the historic Morpeth Bridge to the old train station in Robert Street, a distance of "close to a kilometre".

The business association is keen to take advantage of the State Government's Streets as Shared Spaces funding initiative which "encourages councils to apply for temporary activation projects to deliver short-term improvements to your local streets, paths or public spaces".

"We're shovel ready and this certainly appears to fit the criteria," said Morpeth businessman Trevor Richards.

"We estimate the first stage - from Illalaung Park next to Morpeth Bridge, under the bridge and up to Robert Street - which is a distance of maybe 250 metres, would cost about $150,000. That's not a lot to get this thing started."

The second stage would be to renovate the old train station in Robert Street and make it into an historic museum.

According to Mr Richards, some of the famous old businesses that started in Morpeth including Arnott's, Brambles and Soul Pattinson, have been approached and are keen to supply memorabilia for the museum. The building is State Government owned and used mainly for storage.

Stage three would be to extend the pathway to Queen's Wharf, and the final stage would be to plant native trees, and put artworks and historic facts about Morpeth and its indigenous story, as well as seating and rest spots along the way.

"The thing is it's just so beautiful along there," Mr Richards said. "The locals are aware of it, we walk along there all the time.

"We've brought two of our north ward councillors out, Mitchell Griffin and Robert Aitchison, and they both seemed impressed with our plan and the sheer beauty of the area."

While some of the land is council owned, some of the land in stage three which is the extension of the path to Queen's Wharf, is privately owned.

"But I know the owner of much of it and he's supportive of the plan and is happy to work with council, so I think we can do this," Mr Richards said.

In the meantime Mr Richards has written to council General Manager David Evans and Council's Executive Manager Vibrant City Rachel MacLucas urging them to support the plan.

"It would be the jewel in the crown," he said.

"The bridge is a tourist attraction in its own right - Ford's car ads on television include footage of Morpeth Bridge for goodness sake - so a walk under it would be wonderful.

"The soil along the river is rich and fertile from flooding and trees down there grow like rockets.

"If we planted natives, things like rosewood and red cedar, they would shoot up in no time and it would be magnificent.

"On top of that much of the land is already clear because we walk down there. There are so many things in its favour.

"And best of all, from council's point of view it's not their money - it's State Government money.

"Every weekend we get dozens and dozens of cyclists riding to Morpeth.

"We think it we get this done it could be the first step in council's long term plan to extend a cycle path all the way from Walka Water Works to Morpeth which would be a great way of taking advantage of the river.

"This would make that one step closer to reality."