The Strategic Health Authority announced on Monday that the new Altrincham General Hospital will be built on Railway Street by developer Citybranch.
The developers will now be required to submit a planning application for the site, as the current permission for the site is for office accommodation, and the council's planning officers will liaise with Citybranch prior to the final submission.
Citybranch beat rivals Nikal and Vinci Construction UK to the commission for Trafford NHS Trust. Nikal planned to build the hospital as part of its Altair project in Altrincham town centre. Vinci proposed to build the new hospital on part of the current Altrincham General site.
Cllr Matt Colledge, Conservative leader of Trafford Council, said: "This new hospital is a much needed facility for Altrincham and securing its future has always been the council's priority. Railway Street is an integral part of Altrincham town centre and our ambitious regeneration plans.
"The council has set up a panel of business leaders from across the North West to oversee the regeneration of Altrincham to enhance the appeal of the town centre as a visitor destination by improving the public realm and developing the business, retail and leisure opportunities available. We will now be working with the developers to get this much needed facility built as soon as possible."