Berwick's new hospital will be built on the site of the town's existing infirmary - previously dismissed as unsuitable by NHS bosses.
Plans to construct the £25m new facility attracted protest when they were announced last year, as residents of Berwick-Upon-Tweed insisted the new infirmary should not share the site of a new leisure hub at the town's Swan Centre.
Bowing to public pressure, led by the ' Better Hospital for Berwick ' campaign, the Northumbria Healthcare NHS Foundation Trust said it would find a new site.
And on Thursday, the trust announced the new hospital would be constructed on the site of the existing Berwick Infirmary - a site it had previously said it had been "resultant" to use .
In September, medical director Dr Colin Doig said: "If we were to use the existing site the facilities just would not allow for a new hospital to be built on site."
But on Thursday, Northumbria Healthcare CEO Sir James Mackey said: "Following extensive joint public engagement, and a thorough review of all alternative sites, we believe this is the best option which also commands the support of both staff and the community – a factor which is very important to both the trust and the CCG.
"It is clear that the joint development was not what the town wanted. Instead, people demonstrated their support for a stand-alone hospital on the current site. Accordingly, we have listened, responded and worked together to come up with this plan as an alternative."
Janet Guy, chair of Northumberland CCG added: "Patients are at the heart of our services and this decision is as a direct result of the feedback we have heard."
He confirmed the new site would have all the facilities currently held at Berwick, and the trust would take "a view to incorporating more where safe to do so".
Berwick Councillor Georgina Hill called the move "yet another U-turn".
She addressed rumours that the hospital would be built on the current site at a council health scrutiny meeting in April, though the Trust would not confirm the move at that point.
She said: "This option had been categorically ruled out and now it is back on the table. All these u-turns and delays, will only fuel public suspicion that there is not going to be a new hospital and what remains of the £25m loan from this authority is going to be used for a little bit of decoration and minor upgrades if we are lucky”.
The trust and the CCG emphasised said the full £25million allocated for the project would be invested on the new hospital.
"It’s too early to have specific plans in place – though we are in preliminary talks with a number of possible developers – but we are working quickly to ensure we have plans to share as soon as possible," Sir James said.
"In particular we’ve listened to the local community’s concerns that they have to travel too far, too often for relatively minor or routine appointments. As such, eradicating the need to travel for minor or routine appointments will be a driving force behind our plans and we will ensure we track and publish the number of miles patients have to travel on a yearly basis, with a clear aim to make significant reductions in this travel for patients."
He added: "On a personal note, I would like to thank staff and the community for their patience and participation throughout this process.
"I know it’s been a long and sometimes frustrating road – a sentiment I share – but this is a big, positive step forward.
"Now we have a plan in place we are absolutely determined to get on with it. To that end, I very much look forward to working with the people of the town and surrounding area as we start work on the next phase."
A trust spokesperson said they might be "some disruption" at the existing hospital while construction took place, but "services will continue largely as normal".
