A PLAN to invest £300m to transform hospital services in the region is a step nearer.

Yesterday, the board of Northumberland, Tyne and Wear Strategic Health Authority (SHA) approved the full business case for the large-scale redevelopment of hospitals in Newcastle.

Subject to Government approval, the redevelopment will result in the latest trauma services and a specialist children's wing at the Royal Victoria Infirmary (RVI).

The cash will also allow the construction of cancer and kidney centres at the Freeman Hospital.

Preparatory work has already taken place at both hospitals and it is expected that the cancer and kidney centres at the Freeman Hospital will open in 2008 and that the new RVI facilities will be phased in over four years from 2008.

David Flory, SHA chief executive, said: "This is a plan to transform the quality of hospital services in Newcastle by moving clinical services out of old, outdated buildings and into new, modern accommodation."

Ultimately, all acute services from Newcastle General Hospital will be moved to new buildings at the Freeman and the RVI. As part of these moves the Northern Centre for Cancer Treatment will be transferred from Newcastle General site to the Freeman.

The new renal services centre at the Freeman will bring together all existing kidney services, including transplants, renal medicine and dialysis.

At the RVI, services for adults will be designed around a core of accident and emergency and emergency medicine, supported by trauma services.