Anthony Albanese, Minister for Infrastructure and Local Government, and Peter Garrett Minister for the Environment, have announced the Rudd Labor Government will offer $4 million for the Narrabeen Lagoon Trail on Sydney's northern beaches.

Mr Garrett made the announcement in Narrabeen  with the Mayor of Warringah Council, Michael Regan.

This project, worth $7 million, will develop an 8.5 kilometre trail around the entire lagoon to provide iconic recreational and tourist infrastructure for Sydney's Northern Beaches.

The multi-use trail will open up access to previously restricted foreshores in the South Western basin, and make the lagoon more accessible for Sydney residents as well as interstate and overseas visitors.

The project will enable walking, picnicking, bike riding, boating, fishing and windsurfing access while minimising impact on the environment.

The Narrabeen Lagoon Trail will also help increase the community's awareness about this unique and extraordinary ecosystem at Sydney's doorstep.

The Lagoon covers an area of about two square kilometres and is an important unique estuarine ecosystem. The foreshores of the Lagoon are also home to a number of threatened species and the area is rich in Aboriginal and European history.

At present the Lagoon, jointly managed by Warringah and Pittwater Councils, is already a popular recreational destination for northern beaches residents.

Federal funding will be delivered from the $800 million Community Infrastructure Program - the single largest investment in local infrastructure in Australia's history.

Through the Rudd Government's stimulus package, we are investing in community infrastructure to support jobs and local economies during the global recession.

This funding builds on more than $730,000 that the Rudd Government has already delivered to Warringah and Pittwater Councils for four smaller-scale community projects this year.

Nearly 70 per cent of the stimulus package is on infrastructure, including more than 3,000 projects in the Community Infrastructure Program across Australia to support jobs and make communities even better places to live, work and visit.