The work at Gibson Park play area is estimated to last between five and six weeks and is expected to cost around £76,000.
Once complete, the wide range of new equipment will cater for children aged two to 14.
Councillors David Parker, Jim Torrance and Iain Gillespie said in a joint statement: "We are delighted that we have secured the necessary funding to carry out this major redevelopment of the very popular Gibson Park play area.
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"The play area is very well used and was created around 20 years ago by the community.
"It is now time to upgrade the area as some of the equipment has reached the end of its life. The new play-park will provide more equipment than is currently on site and a far better play experience for the young people in Melrose and the many visitors to the park.
"Funding for the project is coming from a variety of sources but we are particularly pleased that £14,500 from the Melrose Pay Parking fund will go towards the upgrade, as the parking money raised in the town is used for a variety of projects in Melrose each year."
(CD)
