The funding was announced by the Special EU Programmes Body as part of the Peace Plus Programme (re-imaging communities).
Speaking after the announcement, Cllr Nelson said: “This will come as an exciting announcement for everyone living in North Belfast.
“Waterworks Park and Alexandra Park are vital shared spaces within our community but have often been overlooked in terms of investment. This new funding is an opportunity to revitalise the area, provide the local parks facilities people here deserve, and bring the community together.
“We have the ability to leave a lasting legacy in North Belfast, focusing our efforts on regeneration and community integration, and we simply can’t let the opportunity pass us by.”
Alliance North Belfast MLA Nuala McAllister added: “To this day, Alexandra Park is divided in two by an interface barrier. It is not acceptable in this day and age that we continue to perpetuate such stark division.
“This new funding must mark a significant increase in efforts to remove the barrier and bring the community together. That must become part of the legacy of this funding.
“Creating a fully shared, integrated society will take hard work, but Alliance is up to the challenge of seeing it achieved. We must now make the most of such a positive opportunity to see these efforts furthered.”