East Sussex council is also backing the creation of a health authority covering the four counties, and a single primary care trust for East Sussex.

A cabinet report said there were "clear expectations" the moves would lead to "significant management savings".

Last month, research by BBC News found that NHS trusts across the South East were in debt by more than �110m.

East Sussex currently has four primary care trusts overseen by the Surrey and Sussex Strategic Health Authority, and is served by Sussex Ambulance Service.

We believe this is the most sensible way forward Councillor Peter Jones

Restructuring plans involve cutting the number of primary care trusts, merging ambulance trusts, and creating either one or two health authorities for the South East region.

If two are created - the preferred option of East Sussex County Council - one would cover Kent, Medway, Surrey and Sussex and the other would cover Thames Valley, Hampshire and the Isle of Wight.

Councillor Peter Jones said: "Our priorities for the local NHS are improved front-line services and improved efficiency, management and accountability."

The leader of the council said: "We believe this is the most sensible way forward and we are urging the public and our partners to support this proposal."

The council said local consultation on the plans ends on 22 March and a start date for setting up the new organisations has been set for April 2006 for the ambulance trusts, and July 2006 for the health trusts and health authorities.