A $280,000 grant secured by Port Stephens Council through the Australian Government's Local Roads and Community Infrastructure Program will provide the new community space, which is due to be complete in December.

"We heard our community wanted a playground to suit a range of ages and abilities. This will help improve accessibility and inclusivity for young families in Raymond Terrace and surrounding areas," Mayor Ryan Palmer said of the new playground.

"Bettles Park is a highly visible reserve at the southern gateway to Raymond Terrace. It was once a very popular highway stop before Raymond Terrace was bypassed and used to house the Sabre Jet, which is now on display nearby at Fighter World.

"I hope these improvements to Bettles Park with new play infrastructure and accessible public amenities will continue to support residents and visitors into the future."

The playground design was settled on following council consultation with the community, Cr Palmer said, and the NSW Government's 'Everyone Can Play' guidelines.

The new playground will replace the nearby Kinross Park swing set, which has been removed, and will include elements suitable for toddlers to early primary school-aged children, plus seating and paths.

Port Stephens Council's strategy and environment section manager Brock Lamont said the new recreational space supports the council's objectives to create inclusive and accessible spaces.

"All of our recent amenities and recreational upgrades across Port Stephens focus on accessibility and inclusivity for the community," he said.

"The Bettles Park design meets these objectives and looks at play spaces as precincts that are supported by pathways, seating and shade in an accessible way."

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