Harbour Cycle Network co-ordinator Steve Walker said he had cycled the 1.3km extension from Maia to the Ravensbourne Yacht Club and said it reinforced his views the cycle-way was "one of the most beautiful in the world".
The extension, which cost about $350,000 and was funded from a national pool for such projects, was started in May and finished recently.
It runs from the Ravensbourne Yacht Club to opposite Jessie St, in Maia.
The first 1.2km section of the cycleway, which starts at the end of Magnet St, near the Otago University Rowing Club, cost $220,000 and was completed in 2006.
Mr Walker said the plan was to continue to lobby the Dunedin City Council and others in order to extend the track from Maia to St Leonards and eventually to Port Chalmers.
Previous reports have estimated building a further 8.4km of track from Ravensbourne to Port Chalmers would cost more than $3 million.
"The group would like to see quick progress through to St Leonards but will be lobbying hard to make sure that further construction beyond this point is well away from State Highway 88," he said."