The move means that the People’s Park – which was controversially touted as an alternative – is likely to be spared from development.

In a statement, Economic Development Minister Lyndon Farnham said Overdale had been chosen to due its sufficient size, scope and flexibility in design and future-proofing.

He added that it would allow the project to be delivered within the anticipated timescale and that the need to purchase private property and impact on nearby residents would be limited.

‘If approved, Overdale Hospital will be set in an elevated, peaceful location and natural environment, close to town, with incredible sea views, offering individual recovery rooms alongside state-of-the-art and flexible, modern medical facilities and technology,’ Senator Farnham said.

‘The patient experience will be paramount meaning we will be able to attract the very best in healthcare professionals providing the highest standards of care for future generations.’

A proposition inviting States Members to vote on whether the new hospital should be built at Overdale is due to be lodged shortly with members expected to debate the issue in November.