The synthetic turf pitch will be suitable for football and rugby use.
It is hoped that the project, which is being funded by Fife Council, will be completed by the end of the year.
The pitch will be installed by Methil-based specialists Doe Sport North Ltd.
Councillor Mark Hood, Executive Committee member, said: "This is a popular facility in West Fife and I'm pleased that the replacement surface will mean people can play rugby as well as other sports here.
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"This upgrade is contributing to Fife Council delivering on its rugby development plan and local rugby clubs are excited to see the International Rugby Board approved surface coming to the area.
"The pitch will, of course, still be available for football and other sports too. The council will work with Fife Sports & Leisure Trust, customers, sports clubs and schools to develop a balanced programme for the community."
Ed Watson, Fife Sports and Leisure Trust, added: "The upgraded outdoor pitches are a real boost for Dalgety Bay and the surrounding area as well as a great addition to the leisure centre's facilities.
"Leisure centre staff have been communicating with interested local clubs to accommodate rugby and football use – and, they, along with previous users of the outdoor pitches will have their bookings confirmed in due course.
"We are delighted that there is a high level of interest for the use of the pitches and the Trust will ensure that the facility is used to its full potential allowing community use as well as providing club training opportunities."
(JP/IT)
