Middlesbrough Council has appointed Willmott Dixon to build an £18m sports village.
The venue will feature a 400 m, eight-lane athletics track with spectator grandstand, a full-sized football pitch and four additional five-a-side football pitches.
It will be home to sports including rugby, netball, basketball, badminton and roller hockey, as well as athletics and football.
The contractor will also build a fitness gym, studios and café facilities. A 250 m Olympic-length velodrome is planned as part of a second construction phase.
Willmott Dixon managing director in the North-east Anthony Dillon said: “We have a strong local presence in Middlesbrough and our team are delighted to be back again creating something that will have a profound impact on the region’s future prosperity and growth.
“We recently won a Queen’s Award for Enterprise for our work in sustainable development and much of that was recognition of the positive impact we bring to communities. We’re looking forward to adding to that record here,” he added.
The project was procured through the Scape framework. Work on the sports village is due to be completed by spring 2015.
It is the latest phase of Middlesbrough’s transformation programme and work will also include a dedicated link road to reduce traffic congestion and help with access and parking issues at the James Cook University Hospital.
The contractor also confirmed it has been appointed for the £45m redevelopment of Benenden Hospital in Cranbrook, Kent.
Willmott Dixon recently delivered eight new schools for Middlesbrough as part of its Building Schools for the Future programme.