A PLAN to invest £300m to transform hospital services in the region was approved yesterday.

The redevelopment of hospitals in Newcastle will see advanced trauma services and a specialist children's wing established at the Royal Victoria Infirmary (RVI).

The cash will also allow the construction of cancer and kidney centres at the city's Freeman Hospital.

Building work is expected to start in the next two to three weeks and officials estimate that the renal centre will open in spring 2008, with the cancer centre following in the summer of that year.

The RVI facilities will become available in four stages, starting in autumn 2008 and with the children's wing opening in early 2010.

Once the buildings are complete, services will transfer from the Newcastle General Hospital site.

Sir Miles Irving, chairman of Newcastle Hospitals NHS Trust, said: "The people of Newcastle and the North-East face some of the worst health problems in the country, with, for example, high death rates from cancer and heart disease.

"These new facilities will help our staff to provide the best possible care for patients, meeting the highest standards.

"It is a welcome boost for staff and patients alike to know that we have secured the investment required to build hospitals first for the 21st Century."

The development will be funded by private finance initiative and is to be built and designed by Equion Limited, who will then maintain the buildings as part of a 38-year contract.