The Royal Hospital for Sick Children is currently in Sciennes
The construction company which will build a new £150m children's hospital for Edinburgh has been chosen.
The new Royal Hospital for Sick Children will be built by Bam, which also built the Tesco Personal Finance headquarters in the city's Haymarket.
The new hospital will be built at Little France, linked to, but separate from, the Royal Infirmary of Edinburgh.
It will be almost twice the size of the existing Victorian building in the Sciennes area of the capital.
The new building is due to be completed by 2012.
More than 60% of the rooms will be single and the age range of admissions will increase from 13 to 16 years old.
It has been publicly funded with a £25m contribution from charities.
Jackie Sansbury, NHS Lothian director of strategic planning, said: "I am delighted to be able to announce this significant milestone in our journey to create a new world-class hospital for children and young people.
"NHS Lothian had a difficult choice to make and all of the five principal supply chain partners shortlisted made major efforts to respond appropriately to the needs and wishes of our patients and their families.
"We are confident that Bam Construction Ltd will help us deliver a landmark hospital to match the excellence of the services we aspire to provide."
Ken McAlpine, director of Bam Construction in Scotland, said: "This is an ambitious and creative project that will literally transform lives.
"There are very few projects of this scale and nature, not just in the UK but across the world.
"We are as excited about it as we are honoured to be involved.
"It is Bam's ambition not simply to deliver world-class health facilities, but to do so considerately and in a way that involves and respects the community."