The City of Newcastle called for tenders Saturday to complete designs for what it described as a "key link" on the Bathers Way between Strzelecki Lookout and South Newcastle Beach.
The council has called for designs that will transform the section of walkway to create a more accessible shared path through the heritage-listed King Edward Park.
The project will include renewal of King Edward Park's amenities building and will seek to improve the connection between the lawn around the iconic Victorian rotunda and sunken Garside Gardens, the council said in a statement at the weekend.
A key feature of the project is the construction of an Indigenous art installation, the council said, which will educate path users on the Aboriginal significance of the site, while more comfortable viewing areas with shade and seating will enhance the overall visitor experience.
The resulting design will widen and illuminate the current shared path to encourage safer and higher patronage at all times of the day.
Newcastle Lord Mayor Nuatali Nelmes said community consultation would inform the future design process.
"While King Edward Park is one of the city's most popular open spaces, it is also revered for its unique Aboriginal and European heritage," Cr Nelmes said.
"As such, the successful tender must carefully balance those two considerations to deliver a well resolved design that can be appreciated and utilised by all members of our community."
Tenders will close on 24 January 2023, with concept designs expected to be completed mid next year.