An Bord Pleanala has directed Kerry County Council to prepare an environmental impact statement for the proposed South Kerry Greenway Project.
The multi-million euro 26 kilometre South Kerry Greenway aims to connect Glenbeigh and Renard via Caherciveen.
Kerry County Council applied to An Bord Pleanala in February for direction in relation to an EIS for the project which it says has the potential to greatly boost the local economy.
In ordering the preparation of the Environmental Impact Statement, An Bord Pleanala gave almost ten reasons.
The board said it is considered that the proposed Greenway development would be likely to have significant effects on the environment and that the preparation of an environmental impact statement is required.
Meanwhile, a group of local landowners, who are concerned about the project, are set to meet Transport Minister Shane Ross when he makes his rescheduled visit to the county in the coming weeks.
Almost 3.5 million euro has been allocated to the project with €367,000 drawn down in 2016.
In a response to a recent parliamentary question, Minister Ross said he was aware the project had experienced significant challenges in terms of costs, planning, engineering and engagement with local landowners which has delayed delivering it within the funding timeframe.
He said his department will continue to liaise with Kerry County Council on the project.
A new strategy on Greenways is being developed by the department, with input from the public, which includes the approach taken by authorities and agencies where engagement and consultation with landowners is required.
When this is complete the Department will inform Kerry County Council of the approach to be taken to progress delivery of the South Kerry Greenway.