The Sutton to Sandycove (S2S) cycleway is expected to benefit most from the investment, which is targeted at developing, improving and repairing cycle ways and cycle lanes.
The Department of the Environment and the Department of Transport will provide matching funding of €2.5m each towards the city centre section of the S2S and other infrastructure projects next year.
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Dublin City Council is developing detailed proposals for new cycling infrastructure in the city, and the money will be expected to be used towards beginning work on the city centre section of the S2S, the development of a dedicated cycle way along the Grand Canal, and the repair of existing cycle lanes.
Environment Minister John Gormley said: "We have a lot to do if we are to reach levels in other European cities where more than a third of commuters chose cycling. The delivery of safe cycle lanes and cycle paths is an essential element in this."
Transport Minister Noel Dempsey said: "I recently published Ireland's first national cycle strategy which aims for 10% of all trips to work to be made by bike within the next twelve years.
"This funding announced today will help make cycling safer in the Dublin area and hopefully encourage more people to rediscover the up sides of cycling."
(PR/JM)
