Work on the new hospital could start in 2012
Plans for a new hospital to replace the Royal Liverpool have been approved by the government.
Trust bosses said the £451m development would transform health services for communities in the city.
All in-patients will get private rooms in the 643-bed hospital, which will also have parkland outside.
Health Secretary Andy Burnham, giving the go-ahead for the plans, said the new Royal would "lead the way" in regional healthcare.
Subject to planning approval, work on the new hospital could begin in 2012 and the facility could open in 2016.
Judith Greensmith, who chairs the hospital, said: "This is fantastic news for the people of Liverpool and beyond and means that our patients will be cared for in world-class facilities by staff providing high-quality services.
Andy Burnham (left) made the announcement at the hospital
"The new Royal will be a landmark building for Liverpool and means that we can continue to lead the way when it comes to research and innovation."
The plan will now go out to tender as health chiefs choose a building partner for the project.
Building work on the new hospital will cost £328m and be funded through Private Finance Initiative (PFI) cash.
The remaining £123m will be spent on purchasing equipment and demolishing the old Royal.