The Forestry Commission has received £37,500 to develop a demanding 2.3-mile route in the 550-acre Stainburn Forest between Harrogate and Otley.
Nearly a mile of track, built by volunteers, is already in place. It is currently rated "double black" – a measure of its severity.
Money from the North Yorkshire Aggregates Grants Scheme will provide an extension and the installation of the "chicken runs" – allowing less proficient bikers to bypass the severest jumps.
The Forestry Commission is working with local group Singletraction on the project, which should be completed by March. A second loop trail could be built in the near future.
Forester Nick Short said: "The trail will be all-weather, so it won't get clogged down in mud during the winter. Giving bikers their own dedicated route steers them clear of other woodland users while providing them with a real challenge. Creating more recreational opportunities is also a priority under our Active Woods health-push."
Singletraction volunteer Tim Sellors said: "We have been working on the trails for several years. We have packed in some physically difficult and technically demanding features making the most of the woodland. They include steep descents, technical climbs, rock steps and off-camber sections.
"This funding is a great step forward, allowing trails to be completed much quicker. We're really excited that a full loop will soon be completed."
Funding from the North Yorkshire Aggregates Grants Scheme – which compensates local communities for the impact of gravel extraction – will also pay for additional conservation work in the woodland, with dense vegetation being cut back to open up rides and more drainage on footpaths.