The 7km coastal path, which links Kiama Heights and Werri Beach, will be an extension of the existing Kiama Coastal Walking Track that starts at the Minnamurra River and ends at Loves Bay, Kiama Heights.

The State Government has bought additional land for the project under the Coastal Lands Protection Scheme, where sensitive coastal land is brought into public ownership.

The land has been declared a public reserve "for the purpose of public access to the foreshore and the protection of the scenic amenity and ecological values of the area".

Lands Minister Tony Kelly has appointed Kiama Municipal Council as trust manager.

Kiama MP Matt Brown said the declaration of land as a public reserve was the "completion of a dream and a vision that many in the community held for a long time".

Mr Brown said negotiations over the thin slip of land had been difficult.

He said once the track was completed, it would officially open popular swimming and fishing spots to the public.

"Up until now access to this coastline has only been available to the landowners of the properties," Mr Brown said.

"The new track will undoubtedly encourage more visitors into the area which will be good for local businesses and create jobs."

Mr Brown paid tribute to Kiama council's parks and environment manager Peter Stuckey, who said the process of creating the coastal walking track started in 1997.

Kiama council intends to start work at Easter with plans to officially open the track at the end of June.

The track will not be a sealed pathway, although there will be some minor works to prevent erosion or to cross gullies.