Members of the assembly health committee found that cancer services were too complicated, and there was a shortfall in basic treatments.

Health Minister Brian Gibbons said tackling cancer was a "top priority".

The opposition parties welcomed it but were not reassured services would improve and claimed the extra money would only "scratch the surface".

In February the health committee published its year-long review, which found local health boards were not working together, and that services were over-stretched.

It also said there was "confusion and lack of understanding" in the NHS about the roles of local health boards, Health Commission Wales and regional cancer networks.

Dr Gibbons said the extra money would go towards the assembly government's policy on cancer, and in response to the AMs' report.

"Tackling cancer is a top assembly government health priority and I very much welcomed this review when it was published earlier this month," he said.

Local health boards and Health Commission Wales will decide how to allocate the money.

Welsh Conservative health spokesman Jonathan Morgan said: "Brian Gibbons cannot disguise this government's lack of progress in tackling cancer and providing treatment to people when they need it most.

"New investment is always welcome but it will do nothing to reassure people that cancer services will improve."

Liberal Democrat assembly group leader Mike German said he had to see the detail to find out if it was enough.

"It is interesting to note that the minister claims tackling cancer to be a government priority," said Mr German.

"If that is the case why are they so reluctant to fund palliative care adequately and why was it so difficult to get the Labour assembly government to fund brachytherapy?"

A Plaid spokesperson said: "Additional funding is always welcome but this should only form one small part of a much bigger effort by the assembly government to tackle the wide-ranging problems facing cancer services in Wales.

"Our concern is that with NHS debts spiralling, this cash will only scratch the surface of the problem."