The facility in Woodside is set to be completed in time for the 2021 Olympics, when skateboarding will become an Olympic sport for the first time.
The facilities required the whole of the existing metal facility to be replaced with a state-of-the-art concrete skate park which is easier to maintain.
Telford & Wrekin Council asked other authorities whether they wished to use and refurbish the old equipment, which was going to be scrapped.
Following the launch of a campaign by a Church Stretton resident, the town council investigated the opportunity and agreed to house the facility.
The new £100,000 concrete skate park project at Woodside was funded through CIL money from nearby development.
The design was chosen by the local community through public consultation earlier this year, where a number of different designs were presented to the community and the design with the most community votes is the design which is being built.
The design includes a variety of street-style ramps including quarter pipes, a mini ramp, flat ramps with jump boxes, ledges and handrails and is aimed at all abilities.
Councillor Eileen Callear, cabinet member for leisure, libraries and culture, said: “Telford & Wrekin Council is delighted to have worked to complete this exciting refurbished facility in Woodside.
“The facility here is part of our commitment to encourage Telford & Wrekin residents to choose to lead more physically and socially active lives – to do more, enjoy more, feel better. We look forward to creating a great facility for the local community.”
Councillor Rae Evans, ward member for Woodside, said: “This is another stage in the ongoing improvement of Woodside that has taken place over a number of years.
“It will mean that we have a state-of-the-art facility just a stone’s throw from the Park Lane Centre and I really look forward to it opening and being used by local skaters.”
Work is expected to be completed in five to six weeks’ time, subject to the weather.