THE president of the Monaro Rail Trail organisation says the region is a step closer to becoming home to a world-class rail trail following Snowy Monaro Regional Council's decision to pursue grant funding for the project.

Council unanimously supported a motion from Cr Narelle Davis, calling for staff to work with the MRT to deliver a business case for stage one of the project - trail linking Queanbeyan to Michelago, and Jincumbilly to Bombala.

Monaro Rail Trail president Carlo Botto said the decision has given the group greater confidence that Council supports the project and its forecast economic benefits for the Snowy Monaro.

"Our in-depth studies and research, and experiences other regions have had with rail trails, all indicate that a rail trail in the Snowy Monaro would deliver a major economic boost," Mr Botto said.

"Our group has more confidence now that Council sees the project as a prioirty. The support of Cr Davis' motion is a good outcome for the future of a rail trail."

Councillor Narelle Davis' original motion called for Council to complete a business case for stage one by the end of May. Following feedback from Council CEO David Hogan the timeframe could not be met, Cr Davis put forward an amendment motion giving Council staff until the end of the year.

Mr Hogan said the timeframe was more reasonable, and the 11 Councillors voted in favour of progressing the business case and applying for grant funding.

"The revised timeframe has put the Monaro Rail trail project in Council's priorities," Mr Botto said.

"Cr Davis has supported this project and we are ready to help Council with our expertise to progress a business case and eventually funding for the first stage.

Councillor Davis motion came before Council at last week's meeting.