A brand new pump track, skate park, multi-court, playground, exercise stations and amenities are in the pipeline.

Lake Macquarie mayor Kay Fraser said she hoped the space would replicate the success of the city's first pump track at Redhead.

"The Redhead pump track has shown there's strong demand for this type of facility in Lake Macquarie, so it's exciting to be able to deliver a youth hub in Rathmines that I'm sure will be equally well received and utilised," she said.

"Having a pump track, skate park and other outdoor recreation opportunities packed into one space will be a real draw card for young people in our city and beyond."

The playground upgrade will include a learn to ride area to help younger riders hone their skills before taking on the pump track circuit.

The multi-court, which is a quarter of the size of a tennis court, will accommodate a range of hard surface sports which was high on the community's wish list throughout the engagement phase.

Also included in the design are seating and sheltered areas, as well as accessible toilets and connecting pathways.

The project is funded by the state government along with development contributions and was outlined in the council's 2020 masterplan.

Work on the playground started earlier this month, with construction on the youth hub to follow later this year.