The Sligo Greenway project has not been included in the latest round of funding from the Department of Transport.
An application had been submitted by Sligo County Council for money to develop the greenway however it was not successful as planning permission has not been approved for the route.
The Sligo Greenway Co-op aim to develop the disused stretch of railway from Collooney to Bellaghy in Charlestown with the aim of seeing it used as a walkway, cycleway and tourism trail.
Chairperson Pat McCarrick says while they are disappointed they did not receive funding today, he is confident the project will get the go-ahead in the near future.
