Under the plans Hartlepool's hospital site would be sold off

The move would mean the sites of two existing hospitals in Stockton and Hartlepool eventually being sold off.

The inquiry followed an earlier three-year study, which recommended the retention of the two existing hospitals but which was called in by ministers.

The inquiry team said the new hospital would bring improved provision for areas of Teesside and County Durham.

Between October and December 2006, the Independent Reconfiguration Panel talked to councillors, MPs, clinicians and patients about the proposals.

It is not about closing down a service, it is about changing the way services are delivered Health Secretary Patricia Hewitt

It recommended that hospital services north of the River Tees should move towards a new single site to replace out-of-date buildings at Stockton's University Hospital of North Tees and Hartlepool's University Hospital.

While plans for the new hospital are finalised, consultant-led maternity and paediatrics services will be retained in Stockton and a midwifery-led unit and a paediatric assessment unit at Hartlepool.

David Flory, chief executive of NHS North East said: "A new hospital for people living North of the River Tees is an exciting opportunity, which will require detailed planning work to determine the location, size and cost of the development."

Health Secretary Patricia Hewitt added: "These proposals should not be seen in isolation. It is not about closing down a service, it is about changing the way services are delivered in order to ensure they continue to meet the high standards local people deserve.

"The changes to maternity and paediatric services will be supported by changes to transport systems and by new developments in services based in the community."