Tralee Municipal District councillors are set to consider a proposed diversion to the Tralee-Fenit Greenway at a meeting this week.
A special meeting of councillors to decide on the plan will be held in Council Chambers on Wednesday morning.
The ten-kilometre Tralee-Fenit Greenway is due to be completed next year; the route will follow the disused railway line.
Kerry County Council is now seeking approval from Tralee MD councillors for a 700-metre diversion at Bawnboy.
The council has declined to comment on why it is proposing the diversion, but campaign group Friends of Tralee-Fenit Greenway says it was led to believe it was due to a business refusing to vacate the section of railway line.
However, Martin O'Regan of Southwest Pallet Production has told Radio Kerry News he is 100% committed to the greenway and is happy to relocate to any one of several sites.
Ahead of the meeting, Friends of Tralee-Fenit Greenway have written to the councillors asking why the diversion is being proposed and asked them to engage immediately with Mr O'Regan and come to an amicable agreement.
The group says the proposed diversion would bypass significant features of industrial history and also questioned the potential archaeological impact of the diversion.
The group are planning on holding a socially distanced walk-the-line event to highlight the issue.