ZetTrans will receive £200,000 of Scottish government funding to build on positive changes in travel behaviour brought about by lockdown.
Robina Barton, transport policy and projects officer, confirmed on Thursday ZetTrans had been successful in its application.
The partnership met to discuss an overhaul of Shetland’s transport strategy in the wake of coronavirus.
The money comes from the Spaces for People Fund, which is managed by Sustrans Scotland, to help “implement measures focused on protecting public health, supporting physical distancing and preventing a second wave of the Coronavirus outbreak”.
Potential ZetTrans plans include creating a “low traffic neighbourhood in the heart of Lerwick”, alongside covered and heated outdoor seating for cafes and restaurants on Commercial Street to increase capacity for businesses with social distancing requirements.
Outside of Lerwick, improving the safety of walking and cycling in Voe and access to schools across Shetland were raised as top priorities.