Bristol's new super-hospital at Southmead has moved a step closer with approval from the Treasury.

The Department of Health has passed the appointment business case for the £430 million project making way for finances to be secured.

Hospital bosses said the project is on schedule for contracts to be signed in February and work to start on the site soon after.

The new hospital will house the main services from the current Southmead and Frenchay hospitals in a building geared up to 21st century healthcare needs.

It will include 800 acute beds – mainly in single rooms – a community hospital, a helipad, green area, square and piazza.

Parking spaces will increase from 1,650 to 2,700, including a visitor multi-storey car park and another for staff.

Planning permission was granted by Bristol City Council last month and work has already started on the site to make way for the main construction.

Mobile units have been hoisted into place by cranes to build a temporary block to house catering facilities during building work, and staff are in the process of moving into the new pathology sciences and learning and research buildings, which will be fully up-and-running by the end of the year.

Temporary accommodation is also being brought on to the site to house the pharmacy and radiology departments during the construction of the hospital.

The new data centre opened on the site last month to house all the IT systems needed to power the new hospital.

Deputy director of projects at North Bristol NHS Trust (NBT), Tricia Down, said: "Treasury approval of the appointment business case is the critical stage to being able to move forward to getting the deal signed next year.

"This is an absolutely essential step for us and now we can start the funding competition and go out to banks."

NBT chief executive, Sonia Mills, said: "This financing work is the final stage of the project before the new super-hospital really starts to become a reality. Department of Health final sign-off is needed to approve the financing result only."

Amendments have been made to parking to make way for works that have already started, with room being made for staff at the BAWA Club on Southmead Road.

A drop-off area has opened in Central Way to provide access to the main hospital entrance as the current drop-off point will be closed during building works.

A multi-storey car park is due to be completed and open to patients and visitors from the end of next year.