The council owned facility has been in operation for over 18 years, and is set to move to a new premises funded partly by the Department for Social Development.
Coleraine Borough Council said it had undertaken an extensive consultation exercise with user groups and local residents to identify the facilities that should be included within the new centre.
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The local council will fund 50% of construction costs with the matching funding of 50% secured through the DSD's Neighbourhood Renewal Partnership.
Cutting the first sod in the west of the town, Stormont Minister Margaret Ritchie said it was important urban regeneration projects deliver shared public space, which people from all communities can enjoy.
Mayor of Coleraine, Sandy Gilkinson said: "I can not emphasise enough the importance of the Coleraine West Community Centre for the residents in this area.
"A new solid purpose built community centre will allow for enhanced usage and secure the long term future of a community provision in the area."
The new centre replaces a pre-fab structure and will address the inadequacies of the existing facility making it an attractive, safe and sustainable resource for local communities, added the mayor.
(PR/BMcC)
