Completion of a long-awaited bicycle and pedestrian corridor through Sydney's inner west will finally become a reality after the Baird government and a newly created local council committed $7 million each to the project.

Connecting the Cooks River and Iron Cove, the 5.8-kilometre Greenway project has relied for years on sourcing about $14 million in funding for 11 of its so-called missing links, such as bridges and tunnels under roadways and other obstacles.

Transport Minister Andrew Constance said on Wednesday the government would set aside $7 million for completion of the Greenway during the next three years.

"This will be a major connection and ultimately, we have the ability to link into the Bays Precinct in due course," he said.