A new plan for a cycle lane on Deans Grange road includes a 200m detour through the cemetery.
Two-way traffic will remain on the road while a two-way cycle lane will be built.
Controversy over a plan to make Deans Grange road one-way earlier this year led to further consultation on the project.
The cycle route is part of the Active Schools Travel programme, a project to build 25km of cycle track to cater 65 schools in the Dun Laoghaire-Rathdown area..
Local Fine Gael TD Jennifer Carroll MacNeill and local councillor Marie Baker welcomed the new plan during a video on Twitter.
Councillor Baker said: "We got some fantastic news. Last night, Councillors were informed that the Deans Grange Road is going to maintain two-way traffic so the bus routes will go in both directions but also have a two-way segregated cycle lane, most of which will be on the Deans Grange Road but a section will run through the cemetery.
"A lot more detailed planning has to happen on this but looks like we found a permanent resolution to the Deansgrange cycle lane issue."
The plan will be discussed during Monday's council meeting.
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