According to Johnson, finances will be available for the expansion of two of the capital's headline cycle projects – the Cycle Superhighways and Cycle Hire scheme.
Cash will be on hand for the remaining Superhighways – set to number 12 by 2015 – and will be available for an extension of the hire scheme.
Speaking yesterday, the Mayor said: “This is the culmination of months of hard negotiations with the Government and I am pleased that they have recognised the immense importance of protecting investment in the capital.
“London is the engine of the UK's economy and it would be fiscal suicide to have starved it of fuel.
“This remains a difficult settlement but I am glad the Government has recognised my administration in London has been two years ahead of the rest of the country in identifying and making savings, with well over £5bn identified at Transport for London alone.
“Tough decisions have already been taken in the capital and more must be made; but we will continue to share the pain of the nation as we work with the Government to help put Britain's finances back in order.”