Plans to rebuild Alder Hey Children's Hospital have been approved by Liverpool City Council.
The hospital will include a car park, gardens and a helipad
The Royal Liverpool Children's NHS Trust wants to rebuild the hospital at a site in nearby Springfield Park.
Plans for the development were being reviewed to ensure they were affordable and adhered to government guidelines.
The £300m hospital - which will include a car park, gardens and a helipad - will be funded by the government Private Finance Initiative (PFI).
In July, the government said all PFIs - built using private cash, but paid for over time by the NHS - were being reviewed.
Alder Hey Hospital was built in 1911
The plans will go to public consultation next year.
A spokeswoman from Royal Liverpool Children's Hospital NHS Trust said it was "delighted" the plans had been approved.
"The Trust is however, still reviewing its plans in the light of the affordability challenges it faces and we still have many hurdles to overcome in order to get our outline business case approved by the Department of Health next year," she said.
"The Trust aims to go out to public consultation on its proposals next year. "This will enable everyone with an interest in this scheme to put forward their views and become further engaged in our plans."