The New Zealand Herald reports that regions currently struggling in the recession have welcomed the news of the NZ $9 million (£3.6 million) investment.
Construction on two of the planned seven routes is in the Ruapehu District and the region's mayor Sue Morris told the paper: "It will be huge."
"It will definitely create the employment opportunities that we have been looking to have for some years," she added.
According to the Herald, the idea for the new trail was partly inspired by the UK's national cycling network.
Green Party MP Kevin Hague travelled to Britain to cycle the route and was said to be hopeful that New Zealand's version would be a "star in the international cycle touring world".
Founded in 1977, Sustrans provides cyclists with maps and advice to help travel across the UK.
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great travel insurance when travelling to the land of the long white cloud.