The national monument will comprise 298 trees, one for each of the victims of the ill-fated flight, the MH17 Disaster Foundation told the ANP news agency.
"Relatives voted for the most relevant place and decided on the Vijhuizen park, where 298 trees will be planted," the foundation said.
The trees will form a giant green ribbon, a symbol worn by the relatives to commemorate the July 17, 2014 disaster, with an amphitheatre at the centre.
A majority of relatives voted for the park project as Schiphol "is the place where the victims boarded the plane for the last time," the foundation said.
The trees will be lit up at night and will be surrounded by sunflowers in bloom every year on July 17, which will radiate in a "golden glow" said the National Forest Fund foundation, which designed the project.
"We had a wish to make this shared loss visible by creating a living monument," it said on its website.
Dutch-led investigators concluded last month that the Malaysia Airlines flight was shot down by a Russian-made BUK missile fired from rebel-held territory in eastern Ukraine.
All those on board died when the Boeing 777 was blown out of the sky en route from Amsterdam to Kuala Lumpur.
The monument's unveiling is planned for July 17, 2017.
Visiting Ukrainian President Petro Poroshenko today thanked Dutch investigators who led the inquiry into the disaster.
After meeting with Prime Minister Mark Rutte, Poroshenko said a separate criminal investigation into the crash was making progress.
Rutte vowed investigators were "working day and night" to be able to pinpoint exactly who was to blame for the disaster.
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