The first phase, which included the installation of a 3G pitch and running track, was completed ahead of schedule last year.
The second phase will see a significant upgrade to the play park, based on a consultation with children at both primary schools in Mossend.
Mossend and Holytown councillor Frank McNally secured funding from North Lanarkshire Council and has worked with both schools and parent councils to deliver the project.
He said: “The plans for the second phase of the project look absolutely incredible. When complete the transformation will be significant.
“I have been amazed at the number of young people who now use the park, it is a terrific asset that our schools make use of during the day and the community at night and I know this will only increase when the play facilities are upgraded. I am incredibly proud of the work done.
“This will complete our fantastic new development in Mossend and I am delighted that the final design was shaped using ideas generated by the children.”
Representatives of Holy Family and Mossend Primaries welcomed the investment.
Holy Family head teacher Frances Wilson said: “The staff, the pupils and their families welcome this investment whole-heartedly and are excited to build upon the success of phase one which has enabled us to implement our daily mile initiative and offer outdoor PE within a purpose-built environment.”
Lorraine Elliot, chairwoman of Mossend Parent Council added: “The feedback from children on the running track and football pitch has been extremely positive.
“It has provided a wonderful opportunity for children from both schools to be involved and give them a real sense of ownership.
“Phase two will see a dramatic upgrade to the play park and will be a fabulous facility for all children in the area.”