Sport England’s Inspired Facilities funding is part of the £135m Places People Play programme to ensure the sporting legacy from the Olympic and Paralympic Games reaches communities across the country.
The skate park forms part of the Level restoration project, masterplanned by LUC landscape architects, but has been funded separately from council coffers, section-106 cash and grants including £50,000 from Veolia Environmental Trust.
The skate park is being designed and built by Freestyle Skateparks.
The sunken nature of the new design will help retain the open character of the north of the Level and keep its historic layout. A landscaped boundary with insect friendly and drought tolerant planting will be created. Lights, seats, bins, cycle racks and signs will be installed.
"The skate park will form an integral part of the restoration of the park as well as providing substantially improved facilities for skaters of all ages and abilities," said the council. "There has been a skate ramp here since the 1970s, so it is part of the park’s heritage."
The park restoration is funded through a £2.2m Heritage Lottery Fund and Big Lottery Fund grant. Sport England’s chair, Richard Lewis, said the National Lottery investment would "create a lasting sporting legacy for Brighton & Hove".
Places People Play is being delivered by Sport England, working in partnership with the British Olympic Association and the British Paralympic Association with the backing of the London Organising Committee of the Olympic Games and Paralympic Games.
Olympics chief Seb Coe said: "This is a fantastic funding project that will deliver a real legacy from the London 2012 Games. It will provide a whole range of sporting opportunities for young people through improved facilities and will, I hope, inspire them to take up sport."