It will take place alongside the A518, connecting Newport with Donnington and Muxton, with work starting Monday.
The new plans will add a further 2km of cycling and walking routes to the borough's extensive cycling and walking network.
When complete, the new cycle path will also connect the wider National Cycle Network route (NCN) 55 creating links with Ironbridge and beyond through to Staffordshire, including scenic off-road routes along former railway lines.
Telford & Wrekin Council's cabinet member for economy, housing, transport and infrastructure, Councillor David Wright said: “This new route will make a big difference to both cyclists and walkers looking to extend their activities - be they travelling from Telford into Newport and Staffordshire or for visits into Telford.
“This investment further ensures that people have safe routes that provide greater access to green spaces and allows more freedom to explore in a healthy way.”
Drivers can expect to see temporary traffic management from Monday, with a one-way system in place from the start of half-term week on October 25.
The work is due to finish later this year.