The park will be built in the Iskandar development zone in southern Johor state as part of plans to turn the city of Johor into a high-tech urban and industrial.
The new Legoland will feature over 40 rides and will target families with children between two and 12 years.
The theme park is a joint venture between Iskandar Investments and theme park operator Merlin Entertainments.
Merlin, which owns Lego, will own 30 per cent of the project, while a consortium led by Iskandar Investment will hold the rest.
The spokeswoman said construction will start in 2010. The project is estimated to create around 5,000 jobs during its various phases.
"This is a significant first step in developing Iskandar Malaysia as an international tourist destination," Iskandar Investment chairman Azman Mokhtar said in a statement.
Source: The Associated Press