Knowsley Council has secured £800,000 from the government's local sustainable transport fund and plans to reduce carbon emissions in the borough and create greener travel links to business.
The council said the funding is part of the £4.87m awarded to the Merseyside Transport Partnership.
The council added that the funding will allow it to work with local people who currently have difficulty with transport arrangements to their place of employment.
A programme of support is also being offered to local businesses in Kirkby to help them to encourage their staff to use greener travel options, such as walking and cycling to work.
In addition, the council said the funding will be used to help improve cycle routes in Kirkby, which will connect residential areas to employment opportunities in Knowsley Industrial Park and Kirkby town centre.
Cllr Dave Lonergan, cabinet member for regeneration, economy and skills, said: "This is great news for Kirkby, as the funding will assist local people into local employment and training opportunities. It is very important to me that Knowsley is as cycle friendly as possible. By creating planned cycle routes and encouraging businesses to provide cycle storage for staff, we can help make cycling a viable travel option for residents. The works in Kirkby will add to Knowsley's ever expanding cycle network and will compliment existing routes in Whiston and Cronton.
Work will begin on the cycle improvements in late in 2011.