The innovative proposal would see the relocation of recreational facilities from Halekulani Oval to a site currently owned by Woolworths in Colongra.

Council would own the Colongra site and the long-term lease of a neighbouring site from Delta Electricity.

It would be used to create a 10-hectare facility comprising multiple playing fields, a turf cricket pitch, multi-purpose courts, amenities, playground facilities and a car park.

Mayor Doug Eaton said this proposal would provide enhanced sporting facilities and parking, and better co-location with the existing soccer fields.

"We think this is a creative solution that will provide the best outcomes for the whole community," Cr Eaton said.

In return, Halekulani Oval would be rezoned to allow for the development (subject to approvals) of a new Woolworths supermarket next to the existing Budgewoi shopping centre which includes a Coles supermarket.

The deal was expected to create 100 local jobs, the council said.

"This is a real win-win for the community as it means more jobs and retail competition as well as enhanced sporting and recreation facilities," Cr Eaton said.

Council would retain ownership of Halekulani Community Hall which would get a makeover, and a new town park and playground would be developed alongside it.

Works on the new sporting facilities at Colongra could start as early as next year.

The proposal will be subject to public consultation in the coming months.

■ Visit wyong.nsw.gov.au/landswap.