The work will include clearing five trees from the park, just outside the Raymond Terrace CBD.

It is the first stage of the council's Boomerang Park Masterplan, which was adopted in November 2014.

Port Stephens Mayor Bruce MacKenzie said that the project was important for the community.

"The playground is part of the first stage of council's commitment to the overall improvement of this magnificent site," he said.

"It will provide a much needed area for children and families in this area and surrounds, with swings, a carousel and loads of climbing equipment that are sure to provide hours of fun."

He said he looked forward to seeing children using the playground towards the end of 2015.

Port Stephens Council secured a $50,000 state government Community Building Partnership Program grant for the playground project.

The rest of the funds were put forward by the council in accordance with the Boomerang Park Masterplan.

The timing of the work, especially the tree removal, was scheduled to minimise disturbance in the bird nesting season.

The council will replant suitable native trees adjacent to where the playground will be built, adjacent to the Raymond Terrace Before and After School Care building at the park.

As well as preliminary works for the playground, the council will install a crossing on Irrawang Street during the Christmas school holiday break.

Funding for the crossing, $90,000 worth, was secured through the federal government's Black Spot Program.