Clayton Caravan Park, situated between Cupar and St Andrews, is set to expand.
But the planning permission came after an unusual move by Fife Council’s north east Fife planning committee.
While considering the application, Councillor Tim Brett questioned the range of transport options available for park visitors and wondered about providing a cycle path between Guardbridge and Cupar.
Despite reminders from officials there was no funding for such a development, Cllr Brett asked if the park could make a contribution to a cycle path.
In a rare move, Cllr Frances Melville, chairman, adjourned the meeting to allow planning officers and the developers to discuss the proposal.
After just 15 minutes they returned to the meeting to announce an agreement had been reached that the Kennedy family, who own and run Clayton, would give £10,000 towards the construction of a cycle path.
The money will be held by Fife Council for use only for a cycle path, and if work has not started after 10 years it will be returned.
More than 171 new static caravan pitches will be created at the park on a field next to the eastern boundary adding to the existing 469 pitches.