The Green Party has extended its agreement with National to include the New Zealand Cycleway Project.
"The cycleway can benefit the economy and the environment at the same time, and we strongly support this type of Green New Deal spending," said Green Party Tourism spokesperson Kevin Hague.
"We look forward to working with the Prime Minister to see a network of cycleways spread across the country."
The agreement to support the cycleway initiative has been added to the Memorandum of Understanding (MOU) between the two parties.
Signed in April, the MOU committed National and the Green Party to working on policy initiatives in areas of common interest that include a home insulation programme, energy efficiency standards and the regulation of natural health products.
Green Party Co-Leader Russel Norman said more initiatives may be added: "We will keep looking for common ground where we can construct good policy with National. At the same time we'll vigorously critique the Government in the areas where we don't agree."
Mr Hague said the cycling community had helped formulate a sound plan for the Cycleway Project and the key work would be on funding and implementing the Project.
The Otago Rail Trail was a good example of the potential economic benefits of the nationwide project, Mr Hague said. Last year, nearly 80,000 people rode the trail while Ministry of Tourism figures estimate international cycle tourists spent $199 million during their stay in New Zealand.
Summary of Bike Tourism: