The new site at Bridgemary Park is replacing the old park, which had come to the end of its working life.
The plan is for the park to open this summer, for use by skaters, bikers and wheelchair users.
Gosport Borough Council says the new park will provide a smoother ride, with more features for riders to practice tricks – as well as being quieter for nearby residents.
The £140,000 project was born from comments made by local young people at the borough’s Summer Passport scheme, which provides holiday activities; they were backed up by Gosport Youth Council.
The project has been boosted by a grant of £50,000 from the Veolia Environmental Trust.
The project also received a total of £5,000 from Sodexo and Urbaser, who are contracted to carry out landscaping and cleaning in the town.
The Mayor of Gosport, Cllr Linda Batty, who is a Bridgemary councillor, said: ‘It is great to be able to give local young people something they clearly want.
‘There is a very good skate park in Lee-on-the-Solent, but this will provide something similar in the north.’
Connie Stewart from Gosport Youth Council added: ‘It is great that the council listened to young people’s concerns.
‘This new facility will provide such a high quality of skate experiences for the young people of Gosport.’
The executive director of the Veolia Environmental Trust, Paul Taylor, added: ‘The council’s application succeeded in a very competitive environment and we look forward to seeing the park open.’
The company constructing the new park, Gravity Engineering, has built around 200 skate parks across the country.
Sales manager Paul Allen said: ‘I would like the riders who use the skate park to know just how hard everyone has worked to make it happen, at a time when councils are having to tighten their belts.
‘I have worked on lots of these parks, but the way people at Gosport Borough Council have rolled their sleeves up really stood out to me.’