About 100,000 trees are to be planted to create a forest in Zhangjiabang in Pudong.
As well as the forest, the area is also to have a comprehensive sports venue and an "ecological community" combining living, business and offices, the Pudong government said.
The green space will provide an ecological leisure area for east Shanghai. It is surrounded by the Jinqiao, Zhangjiang and Lujiazui neighborhoods.
The forest, temporarily named Longdong Forest, will help to control dust, temperature and oxygen enrichment, thereby relieving "the urban heat effect," the government announced.
A standard football court south of Jinxiu Road E. and west of Guanglan Road will have about 35,000 seats and will be equipped with indoors and outdoors football venues and supporting facilities. It will become the home court of Shanghai SIPG Football Club.