THE site for a major hospital which will see doctors' surgeries and residential facilities under one roof has been given approval.

The £25m development in Redcar will replace services currently at Stead Memorial Hospital, as well as additional outpatient and day-case facilities.

It will also replace the four GP practices in the overcrowded Redcar Health Centre in Coatham Road and part of the Wheatacres Residential Home on Low Farm Drive.

Despite a 90-signature petition and letters of disapproval from those living nearby, council members approved the plans yesterday.

Redcar and Cleveland Borough Council's planning committee granted approval to the outline planning application.

The go-ahead is subject to further approval from the Government Office for the North-East. This is part of the standard procedure and it is not thought it will affect the proposed timescale, leading to the planned opening in summer 2007.

This news comes shortly after the Strategic Health Authority approved the outline business case for the development, meaning the plans stand up financially, from a design perspective and in terms of NHS policy.

The new health facilities will be situated on part of the recreational ground off West Dyke Road, just south of Greenhow Walk, Redcar.

Included in the plans are improvements to the playing fields next to the new site, to compensate for the loss of green space.

Langbaurgh Primary Care Trust, which is behind the plans, held a 13-week formal consultation period and numerous meetings over the past eight months in a bid to mould the services into shape.

Redcar GP Dr John Doherty, who has been campaigning for improved facilities in Redcar for 30 years, said last night: "I am absolutely delighted.

"Everyone is looking forward to a state-of-the-art facility for patients and staff in Redcar. This has been a long time coming and Redcar deserves these facilities."

He added: "We are continuing to discuss with those residents close to the site about the external appearance of the development and traffic and parking issues."

The next stage will be to determine a private sector partner under the Private Finance Initiative.