A Stokesley firm has won an £18m contract for the development at the Friarage Hospital, Northallerton.

Stokesley-based architects P+HS have designed a three-storey building which will house paediatric, gynaecology, women's health, antenatal and early pregnancy wards and a pathology department.

The hospital's maternity department is being completely refurbished and a new dining room, pharmacy and kitchens are being built. The entrance of the hospital is also being redesigned to provide patient parking at the front of the main building.

Chris Potter, partner of P+HS Architects, said the company was delighted.

"The whole hospital has been designed to be as user friendly as possible and to work as an integrated operation, which places departments in convenient locations for each other, and which will enable both patients and staff to find their way around with ease," he said.

Parts of the current hospital date back to the Forties and Mr Potter said the new buildings would all be modern, light and airy with high quality external landscaping.

Work on the second phase of the scheme - which includes a staff accommodation block, mortuary, main support department and hospital stores - will start in early 2005 and completed in 2006.