The £110m redevelopment of the Royal National Orthopaedic Hospital (RNOH) in Stanmore is being planned after the NHS agreed it could be rebuilt on its existing site.

There had been fears that the hospital, which is located off Brockley Hill and trains 20 per cent of all the orthopaedic surgeons in Britain, would be closed and services amalgamated with the Royal Free Hospital in Hampstead.

But the decision, taken by NHS London last month, means the hospital will be rebuilt where it is, subject to the approval of a business plan to be presented in April.

The RNOH has a reputation as a national centre of excellence, but part of it is housed in little more than wooden huts dating back to World War II and the battle to rebuild it has been raging for more than 20 years.

It must also start raising funds for the new facility, which could be open in just over two years' time.

RNOH chief executive Andrew Woodhead said: "This is exactly what we wanted to hear and we can now get on and plan our new hospital in Stanmore, knowing that we have a long-term future here."