Bristol City Council has approved plans for the first phase of the regeneration of Hengrove Park.
The £100 million scheme will see a new hospital, leisure centre, skills academy and business quarter in the area.
The scheme is the first part of a project to build new facilities on a large former airfield.
Bristol Primary Care Trust chief executive Deborah Evans told the Evening Post: "We will be submitting our final business case for approval by the Department of Health in July."
If the proposals are approved construction work will begin this autumn, with the hospital due to open in late 2009.