The project is Strathfoyle is being funded by Derry City and Strabane District Council with support from the Department for Communities.
work is expected to begin over the next few weeks.
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Minister for Communities Paul Givan said: "I am delighted that my Department's funding commitment of £50,000 helped to unlock the other funding necessary to commence the project. It is great to see these plans now coming to fruition and that there will be a new play area available to the local community."
Alex Duffy, Chairperson of Strathfoyle Community Association, said: "The people of Strathfoyle are very excited with this news. We would like to thank DCSDC for all their hard work and commitment to the people of Strathfoyle."
(CD)
