Plans to build a £250m "superhospital" in Peterborough have been approved at a health authority meeting on Thursday.
Health managers want to focus acute services for the city on the Edith Cavell Hospital site.
The new centre will be one of the biggest building projects in the city for many years and is due to open in 2010.
The proposals were agreed at a board meeting of the Norfolk, Suffolk and Cambridgeshire Strategic Health Authority on Thursday.
Private finance initiative
Other components to the new plan include a mental health and learning disability centre at the Edith Cavell site, incorporating in-patient, out-patient and therapy facilities.
There will also be a care centre in central Peterborough, providing rehabilitation services, a minor injuries clinic, a children's unit and out-patient treatment.
The project is to be funded under the private finance initiative, and will now be put out to tender.
It is hoped building work will start in 2005.
Health managers said the new system would create an extra 300 jobs.