The new hospital will be built on the site of current Infirmary after plans to build a leisure centre on part of the site ran into public opposition.
The Trust, working in partnership with NHS Northumberland Clinical Commissioning Group (CCG), had previously proposed a joint health and leisure development.
Following feedback from public consultation, they reviewed alternative options and have now decided just to build a new hospital on the existing site.
“We are delighted to be able to announce that the new hospital will be built on the site of the much loved (Berwick) Infirmary,” said Northumbria Healthcare CEO Sir James Mackey.
“It is clear that the joint development was not what the town wanted. Instead, people demonstrated their support for a stand-alone hospital on the current site. Accordingly, we have listened, responded and worked together to come up with this plan as an alternative.”
He added: “It’s too early to have specific plans in place – though we are in preliminary talks with a number of possible developers – but we are working quickly to ensure we have plans to share as soon as possible.”