Ararat Rural City Council chief executive Dr Tim Harrison said the trail received funding through the State Government's COVID-19 Stimulus Package.

"We aim to create employment through the construction of the bike track as we come out the pandemic," he said.

"The funding will establish this trail as a key piece of cycling infrastructure.

"It's a really exciting project. Our mountain bike club have been running tracks through there for quite some time and now there's an opportunity to formalise the tracks."

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The 50-kilometre trail, to be built at Ararat Hills Regional Park, will receive $2.7 million from State funding and $300,000 from Council.

Dr Harrison said the trail would see significant opportunities for regional cycling and tourism in Ararat.

"It is going to be a high-value tourism opportunity for us in Ararat," he said.

"The trail will be jointly managed by Council, Regional Development Victoria and Parks Victoria.

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"We are looking forward to getting underway because mountain bikers are terrific tourists. They bring money to the town and they are good people to have around."

Dr Harrison said the Council had been lobbying for this project for several years.

"It has been on Council's books for quite some time, and the local mountain bike club has also been working on this for a number years," he said.

"We have been putting it front and centre with the State Government at every possible opportunity.

"To actually see it get funded and moving forward is a great opportunity for regional cycling."

Grampians Tourism chief executive Marc Sleeman said the trail would drive new visitation to the region and position Ararat as a world-class mountain biking destination.

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"I think it is one of the most exciting infrastructure projects for our region. It will be a game-changer for Ararat and the Greater Grampians region," he said.

"The mountain biking sector is a high-value traveller and it's the audience we are targeting.

"The north-east have owned mountain biking for a long time, and we are going to challenge them as a comparable mountain biking destination ... I think we are well-positioned."

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