This modernisation programme represents an exciting new future for the hospital

Bairbre de Brun, Health Minister

"The time is right to embark on a comprehensive modernisation programme in line with the current schemes at Altnagelvin and the Royal Victoria Hospitals," she said.

"The strategic development plan submitted by the trust sets out an ambitious programme which I am happy to endorse as the agenda for the redevelopment."

The Ulster Hospital is one of four designated cancer units in Northern Ireland and requires additional bed capacity, outpatient facilities and imaging equipment.

Its accident and emergency department, maternity department and theatre blocks will also be upgraded.

Acute services

The hospital trust looked at other options, including building a new hospital on a green field site, with an estimated cost of �218m.

Bairbre de Brun: Wants to reduce trolley waits

The minister said the Ulster Hospital provided acute services to about 250,000 people.

"This modernisation programme represents an exciting new future for the hospital, ensuring that the population which it serves receives the highest standards of treatment and care for many years to come," she said.

"I can also announce today my approval for the first element of phase two of the plan, the reinstatement of 20 adult inpatient beds in Jaffe Ward.

"The allocation of �2m for this work, funded through the Programme for Government, demonstrates my resolve to address the problems of bed capacity at the hospital and reduce the unacceptable number of trolley waits."

The announcement was welcomed by SDLP health spokesperson Annie Courtney.