Some people have protested against the new development
A site has been chosen for a new hospital for Teesside.
An NHS Joint Committee recommended that the £420m, 660-bed "super hospital" be built at Wynyard, near Stockton, north of the A689 and west of the A19.
It made the decision after examining issues of transport, investment and the impact on staff.
More healthcare facilities will also be built in Stockton, Billingham and Yarm, and one is already under construction in Hartlepool.
Some local residents petitioned against the move for the seven-storey building, claiming it would create traffic problems and they were not properly consulted.
The committee's decision has been welcomed by the company which owns the development site.
Chris Musgrave, chief executive of Wynyard Park Ltd, said it was "fantastic news".
He said: "This world class hospital will provide the nucleus of the remaining development and will help to take the site forward to an exciting new phase.
"We will work closely with the hospital designers and development team to make sure that the new hospital fits within our site's masterplan."