The three Ceredigion hospitals are in rural locations

The Welsh Assembly Government money will be used to help build a new �9.7m hospital in Cardigan, and provide new facilities for Tregaron and Aberaeron over the next three years.

Friends of Cardigan Hospital said it was committed to raising a target of �100,000 towards the new unit.

The money was announced in the assembly government's NHS capital budget.

Alan Brown, secretary of the Friends of Cardigan Hospital, said: "We've been talking about having a new hospital in Cardigan for a few years now and I'm glad the Assembly has found money for new hospital buildings."

We've been talking about having a new hospital in Cardigan for a few years Alan Brown, Friends of Cardigan Hospital

"The current hospital building is more than 100-years-old so we're happy that things are finally moving forward."

The 25-bed hospital - which provides acute nursing and palliative care - has a minor injuries unit, as well as outpatient and specialist services including physiotherapy and speech therapy.

The friends are also committed to raising at least �100,000 towards the new hospital project, but it is unclear at present when the new building scheme will go ahead.

A site for the new hospital has to be chosen and planning permission will also have to be sought. However, building work could start at the end of the decade.

Meanwhile, Tregaron Community Hospital has received �7.8m from WAG, while �3.07m has been awarded to Aberaeron Hospital.