The scheme will be built on a town centre site for Shepway Sports Trust and has been designed by Guy Hollaway Architects.
Site preparations will start imminently ahead of main construction work with a target date of late summer 2017 for completion.
The site is being provided by the Roger De Haan Charitable Trust which is also funding the full cost of development and construction.
The park will incorporate facilities for skateboarding and scootering. It will also include a climbing wall over three storeys plus facilities for trials bike riding and boxing.
Westridge Construction Managing Director, Steve Phillips said: “We are pleased to have been awarded this prestigious contract.
“Being based locally, it is good to see so many significant developments that are helping to make Folkestone and other towns in Kent more attractive places in which to live and work, and we are proud that we can be part of this process.”
The Urban Sports Park will be managed by Shepway Sports Trust. Trustee Dan Hulme said: “The appointment of Westridge follows a rigorous selection process to identify a contractor that could deliver this challenging project on time and to the highest standard.”