It will replace the current defunct sign outside James Calvert Spence College on Acklington Road.
It is being funded by Cllr Jeff Watson through his small schemes funding with Northumberland County Council.
"Lots of people in that area are concerned about children crossing the road at the Welfare Park and people speeding down there,” he said.
"I am sure a reactive speed sign will be a good thing to have.”
He also welcomed news that the purchase of land for the extension of the Turner Street car park had been finalised.
“A lot of false information was put out about this,” said Cllr Watson. “The council has a duty to get the best value that it possibly can for its taxpayers and I think at the end of the day we have got a deal which is good both for the council and the people selling it so I’m very pleased.”
He had spoken to the highways department and urged officers not to delay the work due to the summer season.
"We need to get on with it as soon as possible,” he said.
He also revealed that Warkworth Harbour Commissioners had sent a letter to a resident requesting the removal of a dumpy bag at the end of the pier walkway.
"The harbour commission has asked the individual involved to remove the dumpy bag,” said Cllr Watson.
“I went around there the other day and what’s happening is that the public are using it as a waste bin and there are absolutely hundreds of empty cups which have been chucked in. When the wind gets up they are just going to go everywhere.”
Cllr Watson is also asking the county council for improved lighting at the Church Street bus shelter where there have been anti-social behaviour issues. The police report also noted the situation had improved in recent weeks.
The potential for a path between Acklington Road and the A1068 around Welfare Park is also still being investigated. A shared cycleway/footway is envisaged but there are land ownership issues to overcome.