It is hoped the makeover by City of Wolverhampton Council will breathe new life into the play area at Bushbury Memorial Recreation Ground.
Funding for the project will come from the Housing Revenue Account (HRA) if approved by the Cabinet (Resources) Panel next Tuesday (15 September).
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets, said: "This will revitalise the playground at Bushbury Memorial Recreation Ground and provide children with new facilities they can enjoy.
"The enhancements will also make the area more attractive to potential developers and encourage a competitive procurement process for delivery of the Tap Works scheme."
Plans to build on the former Armitage Shanks Tap Works Factory site were revealed in July as part of an ambitious programme by City of Wolverhampton Council to build more than 100 homes across three derelict sites.
The factory on Showell Road closed its doors in 2007 and has since been demolished.
The council now hopes to appoint a development partner next year to build a mix of high quality council homes for rent and private homes for sale on the site, as well as on land on Fifth Avenue and Broome Road.
Construction could start by summer 2016, with a view to the council units being completed within 2 years, followed by completion of the market housing.
- released: Tuesday 8 September, 2015