Sutherland Shire Council will investigate establishing a skate park and other action sports facilities in Seymour Shaw Park at Miranda.
Other facilities in the proposed precinct could include an outdoor basketball court, parkour zone and climbing walls.
It would also be a place where young people could just 'hang out'.
The suggested site is the south-western corner of the park, near the playground and tennis courts.
A motion at this week's council meeting by Cr Jack Boyd to investigate the idea was unanimously supported.
Council staff were asked to prepare a feasibility report by April, 2020, which will be considered in a review of the Developer Contributions Plan and Long Term Financial Plan.
Cr Boyd said state government funding was available to support such facilities and he believed the cost to the council could be just $500,000.
"I think it would be a huge win for the community," he said.
The meeting was shown a map of existing skate parks at Greenhills, Menai, Engadine and Bundeena.
"The central part of the shire, in which most residents live and is the retail hub, does not have one," Cr Boyd said.
"It is high time this need be met.
"Seymour Shaw Park is the perfect location for an active sports precinct and will serve to meet this service gap.
"It is close to Westfield and other shops, within walking distance of the train line, contains a playground, a number of playing fields and tennis courts and, for those able to drive, sits along arterial roads.
"The south-western corner of the reserve is largely flat and could comfortably house a precinct without encroaching upon existing services."
Cr Boyd said similar precincts in other parts of Australia included an award winning project in Fremantle, Western Australia, and a smaller initiative in Flagstone, Queensland.
Cr Boyd said the council could apply for a state government grant to assist in financing the project.
"The Greater Sydney Sports Facility Fund has $33 million available in 2020, with grants up to $5 million per project," he said.
"Projects over $1 million require a 25 per cent contribution from council.
"While the application process for this fund does not open until July, 2020, we must begin the process now and ensure our Developer Contribution and Long Term Financial Plans are appropriately adjusted."
