Dr John Reid approved plans by the North Bristol NHS Trust and local PCTs to invest in services and facilities, with work to be completed by 2012.

Public consultation on the options open to local health services is expected to gear up by the end of the year.

The idea, however, is to "concentrate specialist hospital services and have a network of community facilities".

To achieve this, Southmead or Frenchay Hospitals in Bristol could act as the main "acute services site", with extra community facilities on one site and extended community hospital facilities on the other.

This �300m investment will enable us to build services which are safe, high quality, and fit for the 21st Century Sonia Mills

Or Southmead, Frenchay or a new greenfield hospital could provide all the services.

All the options include the enhancement of community healthcare facilities at Thornbury and Yate, plus planned developments at Kingswood and Central and East Bristol.

The money has come from the Department of Health, which authorised 15 new NHS developments in England on Tuesday, including a new �75m surgical centre in Taunton.

Sonia Mills, chief executive of North Bristol NHS Trust, said: "We are delighted that the Department of Health has given its approval to our case, as significant investment is long overdue.

'Staff commitment'

"This is part of the strategic development for Bristol and the wider area and the major component for the wholesale improvement of the local NHS.

"This �300m investment will enable us to build services which are safe, high quality, and fit for the 21st Century.

"Health care provided locally within communities, will significantly improve access for less specialised services.

"The decision confirms a commitment to our staff to invest in their working environment, and demonstrates that their aspirations for providing better care are matched by national commitment."