The authority's chief executive, Sally Barnes, said the three-year project was designed to "spruce up" the park for daily visitors and major events, such as Floriade.

Ms Barnes said the precinct's toilets and furniture would be upgraded in the early stages of the project, which could later include a reconfiguration of the paths that run through the 34.5-hectare park.

This could lead to the creation of separated paths for cyclist and walkers, she said.

"As well as doing those immediate improvements, we will do some more detailed work about how people move through the park and how we might improve safety and amenity and that may lead us to consider separate paths," she said.

Cycling lobby group Pedal Power has called for separated paths for walks and riders on busy sections of Lake Burley Griffin amid rising conflicts between pedestrians and cyclists.

Ms Barnes said the investment was designed to enhance rather than transform Commonwealth Park, but hinted the upgrade could help lure more events to city site.

"The project is about enhancing the park and making it better and contributing to making events like Floriade world class.

"We are very convinced that those areas around the lake, with more people living in the city, they are going to be such an incredible part of people's green space, their recreation and their health and wellbeing."