The in-patient wards at Buckland Hospital in Dover are currently closed
Health chiefs have backed plans to build a new hospital in Dover.
Eastern and Coastal Kent Primary Care Trust (PCT) agreed plans for the complex next to the Dover Health Centre in the town centre.
The in-patient wards have been closed at the town's current hospital site in Buckland, which houses a minor injuries clinic.
Parking, access by foot and public transport and room for expansion are key priorities for the new hospital.
Colin Tomson, chairman of the PCT, said: "This is a good news story for Dover.
"We hope that local people will be pleased the uncertainty is over and we can move forward with partner organisations to deliver a new hospital by 2011 to 2012."