Dr John Reid, the health secretary, also announced that leading mental health trusts will be able to apply for foundation status for the first time.

The next trusts will be authorised in November 2004 and February 2005, with 20 already established in England.

The scheme gives greater financial and management freedom, but requires trusts to achieve the top three-star rating.

NHS Trusts that can apply for Foundation status Aintree Hospitals Barnsley District General Hospital Birmingham Heartlands and Solihull Birmingham Women's Healthcare Burton Hospitals Chesterfield and North Derbyshire Royal Hospitals East Somerset Frimley Park Hospitals Gateshead Health Harrogate Healthcare Lancashire Teaching Hospitals Liverpool Women's Hospital Nottingham City Hospital Royal National Hospital for Rheumatic Diseases Southend Hospital South Tyneside Healthcare The Newcastle Upon Tyne Hospitals The Royal Bournemouth and Christchurch West Suffolk Hospitals Wrightington, Wigan and Leigh

Four of the existing NHS trusts with foundation status dropped a star in the latest performance ratings.

Mr Reid said the announcement of the new wave of trusts was "another important step on the road to decentralisation", freeing up the NHS from day-to-day Whitehall control and giving local patients more power.

"We're committed to ensuring that all Trusts have NHS foundation status by 2008," he added.

The Department of Health will keep working with NHS trusts which had deferred applications or had not secured a three-star rating, he added.

Mr Reid said an application from South Devon Healthcare NHS Trust had been refused, but it would receive help to secure foundation status as soon as possible.