A decision on Tuesday, March 11 means designs will be drawn up for the project, which includes raising the path between Jubilee Terrace and Scarborough Bridge, before works begin.
City of York Council transport spokesperson Cllr Kate Ravilious said she hoped the improvements would encourage more people to use the route on top of the roughly 2,500-a-day who already do.
But St Barnabas Church Vicar Paul Millard said a related decision to put double yellow lines in Jubilee Terrace would remove parking for visitors including weddings and funeral guests.
It follows engagement with locals and path users which received more than 1,000 responses on designs for the project which were drawn up following initial consultations in December 2022.
Active Travel England awarded funding worth £1.1 million in May 2023, but the project has since been scaled back from an original scheme costing more than £1.9 million due to financial constraints.
The revised scheme will see the stretch of path set to be resurfaced reduced by half and it will be raised by 25cm, along with new lighting and widening works.
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