This announcement follows lengthy negotiations between Kingston Council and Thames Water, with the utilities giant agreeing to meet 100% of the cost.
In recent years the playground has suffered flooding and sewage contamination after periods of heavy rainfall. The Council decided to close the playground last summer for health and safety reasons and has been in discussions with Thames Water ever since.
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Councillor Derek Osbourne, Leader of Kingston Council, said: "This agreement with Thames Water is fantastic news. It means that residents who have had to put up with a facility that is not fit for purpose because of frequent flooding will soon have one of the best playgrounds in the borough on their doorstep.
"We are keen to get things moving as quickly as possible and we want to involve residents in choosing the new equipment and deciding the exact location of the new playground, so they should hear from us very soon."
The re-sited playground will feature a combination of new and existing play equipment, a dog-free picnic area, better fencing and an improved path, making the area accessible to all. The playground will be compliant with Disability Discrimination Act (DDA) regulations.
The site of the existing playground will be restored back to green open space, with all work overseen by Quadron Services, the Council's long-term grounds' maintenance partner.
Planning permission will be required before the works can be undertaken.
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