Graham Construction had been selected in 2018 to develop the new eye hospital for NHS Lothian but funding was subsequently withdrawn.
Health secretary Humza Yousaf has now confirmed that the outline business case has been approved by the Scottish government and that NHS Lothian has been invited to submit a full business case.
The project will be part of a £10bn investment in the NHS estate over the next 10 years, bringing about the renewal and replacement of health facilities across Scotland.
Yousaf said: “I am delighted that we are a step closer to delivering improved specialised eye services for the city of Edinburgh and the wider region.
“The Scottish government is committed to working closely with NHS Lothian to meet the demand for eye care, with improvements for patients and a more modernised service.”
Earlier this year, the Scottish Government asked NHS Lothian to carry out a review of eye care services, including redesigning treatment to enable patients to access care closer to home.
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