The Shanghai Morning Post said the first phase of the project on Chongming Island will be completed within a year and will cover 7.2 million square feet (667,000 square meters).
Named after the home of Peter Pan, Neverland Ranch was a Jackson's whimsical retreat replete with carnival rides, a coterie of animals, two trains and a Disney-like station.
The total cost of China's version is expected to be around 100 million yuan ($14.6 million). The tribute to Jackson, who died June 25, will include a man-made lake, cinema and a zoo, the Shanghai Morning Post said, citing Qiu Xuefan, vice director of the Wenzhou Chamber of Commerce.
Jackson memorabilia bought by auction and other "private channels" will be on display, the paper said.
Neverland was valued at $33 million in 2006, according to an accounting firm's report from 2007.
Chongming Island is in the Yangtze river to the north of Shanghai.
Sources: AP
