The report revealed Latrobe City Council intend to spend $7.81 per person of the population on cycling infrastructure for this financial year.

The results showed other Gippsland councils were below the $5 threshold, including Wellington Shire at $4.82 and Baw Baw Shire at $4.92 per person.

Bicycle Network's Bike Futures program manager Mike Williamson said it was imperative councils invested in appropriate facilities to support recreation, leisure or sport bike riders.

"More and more municipalities are seeing the relevance of bicycles in their communities and the role they can play in addressing societal problems such as community health and climate change," Mr Williamson said.

"Local issues such as the cost of living and traffic and parking congestion can (also) be tackled by increasing bike riding."

The annual BiXE report reveals the level of commitment councils have for bicycle transport and recreation.

He said Latrobe City was in a strong position to attract tourism through bike infrastructure investment.

The report suggested investment opportunities within the municipality such as further development of the Moe-Yallourn Rail Trail, improvement of the Gippsland Plains Rail Trail from Traralgon to Toongabbie and development of inter-town trails between Traralgon, Morwell, Moe and Churchill.

"Let's not forget about the tourist dollars that rail trail riders can bring," Mr Williamson said.

"We talk about 'build and they will come; (if) you put the right facility in the right place and fund it properly, you will have people using it."

He also explained the financial benefits of individuals opting for the bike rather than the car.

"People will have more money if they are riding regularly to a cafe, pub, or the shops because they are not spending it on petrol," Mr Williamson said.

Latrobe City Council was not available for comment by time of publication.