Borough council chiefs hope the investment will open up Midsummer Meadows and Becket's Park to all sections of the community.
A new riverside walk along the River Nene with seating will be created in Midsummer Meadow, along with a docking area for boats, while the path in neighbouring Becket's Park will also be improved. The area, next to Bedford Road, has developed a reputation as being a popular location for gay men to meet up.
Councillor Richard Church (Lib Dem, Kingsthorpe), the borough council's cabinet member for regeneration, said: "We are aware that it's a gay cruising area but we want all people to come and use the park from whatever background. This park is for all the people of the town, not for any one group.
"People can come here and meet but I wouldn't expect people to behave in such a way that it causes offence or nuisance to anybody else who uses the park."
The council gave a presentation to members of the Northamptonshire Lesbian, Gay and Bisexual Alliance (NLGBA) detailing its plans.
Councillor Church said that, with the prospect of major new developments on the south bank of the river, the council wanted to create an "easy and attractive" pedestrian link to the town centre.
He added: "The Nene is one of Northampton's hidden treasures. For generations the river has provided the town's industry with a vital link to the Grand Union Canal, and now we are making it easier for everyone to enjoy the riverside."
The new Midsummer Meadow path will connect Nunn Mills Road with the park's picnic area. Seating areas will be added along the path and the derelict canoe club building will be demolished.
Becket's Park will see work to improve access to the river at the southern end, near the bowling greens and tennis courts. New lighting and benches will be installed and undergrowth will be removed. The area around the canal lock will be repaved to make it more accessible.
Work began earlier this month and the project is expected to be finished on March 31, weather permitting.
The council secured funding for the project of more than £375,000 from Northampton Enterprise Limited.
oliver.jelley@northantsnews.co.uk