Old buildings, dating back to 1828, will be demolished and new ones will be put up in their place.
Chancellor of the exchequer George Osborne said: “I am delighted that we have been able to green light the investment for the much needed redevelopment of the Royal Sussex County hospital. This is great news for Brighton and the whole local community. Bringing the buildings and facilities of this venerated hospital up to modern standards will enhance and improve patients’ care and experience.”
The works at the Royal Sussex County hospital site will be fully financed from public funds and as part of the Department of Health’s capital investment budget.
Laing O’Rourke has been on board as main contractor since 2009.
Redevelopment works at the hospital site are expected to start later this year with temporary buildings put up to house clinical services currently in the redevelopment area.
The full business case will be submitted for approval later this year. Subject to that, work on the first building of the main scheme is expected to start in autumn 2015. C ompletion is planned for 2024.
The hospital is owned by the Brighton & Sussex University Hospitals NHS Trust, whose chief executive Matthew Kershaw, said: “We have been working on the plans for this redevelopment for six years. We can now move forward with confidence into the next phase which will lead to the final approval of the project and make our plans a reality.”