The council and Advantage West Midlands, the regional development agency for the West Midlands, are funding the £11m project.

Located in the city's Eastside, the park will feature recreational space, formal gardens, water features and areas for special events, and will cover an eight acre stretch of land running from Moor Street Station to Eastside Locks, passing between Millennium Point and the main Birmingham to London rail line.

The project seemed in doubt two years ago after the council failed in its bid for £25 million from the National Lottery's Living Landmarks fund. Since then the original architects have produced new designs within the new council-funded budget.

Mike Whitby, leader of Birmingham City Council, said: "The new park will provide a cornerstone for the wider regeneration of Eastside, a key element of the Big City Plan, encouraging more people to live, work and enjoy both the area and wider city. It is part of the £6bn of public funded projects that will transform the city over the next decade."

Work could start as early as 2010 with completion before the end of 2011.