The NSW Office of Sport will work with NSW Health, Lake Macquarie City Council, other NSW Government agencies and the local community during the planning and design process for the new facility.
NSW Health has agreed to the land transfer, enabling the NSW Office of Sport to commence planning for a new purpose built, indoor and outdoor sports and recreation facility at the site.
The former Government announced the closure of the Myuna Bay Sport and Recreation Centre without delivering a clear plan for its replacement.
A timeline for the construction of the new facility be developed with construction works to commence once existing health services at Morisset Hospital are relocated to the new Maitland Mental Health Rehabilitation Facility.
Minister for Sport Steve Kamper said:
"We are focused on getting this project back on track, to deliver a sports facility the whole community can enjoy.
"The decision by the NSW Government to build the new Morisset Sports Facility on the grounds of Morisset Hospital will provide a fantastic opportunity for the growing community of the Morisset region.
Minister for Health Ryan Park said:
"I'm pleased to work through this plan with my colleagues, NSW Health and NSW Office of Sport to find a solution that maintains high quality health services in the region and brings the most benefit to the Lake Macquarie community.
"The new sports facility on the grounds of the Morisset Hospital will be a welcome addition to the area once existing health services are safely transferred."
Minister for the Hunter, Yasmin Catley said:
"It's fantastic that a site has been secured for the new Morisset Sport & Rec Facility which will massively benefit our community.
"This centre will be a place our kids can come to connect and enjoy all the physical and mental benefits of sport."
Member for Lake Macquarie Greg Piper said:
"The location of the new Morisset Sports Facility is second to none. It's ideally situated on the shores of Lake Macquarie and includes the existing sports oval and bowling club.
"The sudden closure of the Myuna Bay Sport and Recreation Centre five years ago deeply affected the Lake Macquarie community. Today's announcement that land has been secured for a new facility is welcome news.
"Morisset Hospital holds significant heritage and cultural value for the people of Lake Macquarie. Using part of the grounds for the new sports facility ensures it will continue to serve our community for generations to come."