The money for Dickens Square is part of a £5.96 million package of funding to improve green spaces in the Elephant & Castle area approved by the borough's cabinet earlier this month.
According to the text of a motion agreed by council assembly this week, consultation on the proposals for Dickens Square will "proceed with all due haste".
The motion also notes that the plans include "tree planting, sightline and accessibility improvements, new footpaths, new green spaces as well as new links to other green spaces and improved recreational and play space".
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