South Tyneside Council has appointed Balfour Beatty Civil Engineering to construct the park, which has been named Harton Quays Park.
The park will stretch along the Tyne from South Shields ferry landing to the Customs House and feature curved embankments, a refreshments kiosk, promenade and amphitheatre.
Construction work is due to get under way in July, with joint-funding by the Homes and Communities Agency (HCA) and South Tyneside Council on land owned by both partners.
Councillor Michael Clare, Lead Member Regeneration and Economy (above right with Phil Morgan from Balfour Beatty), said: "This appointment represents another big step forward in the regeneration of South Shields Riverside. The park will provide a spectacular waterfront space for people to enjoy; whether they want to stroll and watch the boats go by, find a sheltered spot to relax or stop for a cup of coffee.
"All of this will enable us to offer town centre visitors a high quality shopping and leisure experience that they cannot get on the Internet or at out of town retail parks whilst acting as a catalyst for major private sector investment in the area."
Neil Graham, Head of Capital Programmes at the HCA, said: "This is great news for the residents of Shields. The facilities in Harton Quays Park will be fantastic and will open up this stretch of the river for everyone to enjoy. I'm particularly pleased that we have been able to contribute not only some of the land for the park but have also invested £2million in the development."
Phil Morgan, Regional Director at Balfour Beatty Regional Civil Engineering, added: "We are delighted to be working on Harton Quays Park and to be delivering what will be an important scheme for the wider region. This significant scheme will breathe life back into the area through a wide range of enhancements brought about by vital regeneration. We are looking forward to working with South Tyneside Council to successfully construct the park."
The park is being developed as part of the wider regeneration masterplan for South Shields Riverside and is due for completion in Spring 2013.
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