A FORMER Newport steelworks site has been officially earmarked as the location for a potential new hospital.

Newport county borough council believes a replacement for the Royal Gwent Hospital should go on land formerly occupied by the Whiteheads steel plant and Monmouthshire Bank Sidings, off Mendalgief Road, a stone's throw from the Royal Gwent.

In its unitary development plan (UDP), which sets planning and development guidelines until 2011, the council has reserved the site for health use, making it less likely that it will be turned into housing or shops.

Gwent Healthcare Trust, which runs the Royal Gwent, is not commenting on the issue.

Health bosses have acknowledged that the Royal Gwent must be replaced in the next ten to 15 years, but this can only be done as part of a Gwent-wide revamp of hospital services.

Such services must change to take heed of the changing needs of patients and of treatment and care in the 21st-century NHS, and it is not just a case of moving the Royal Gwent lock, stock and scalpel to another site.

Detailed thinking about Newport's future hospital needs is in the very early stages, however, and health bodies have not yet addressed the question of sites.

A replacement hospital with improved car parking is, however, part of the vision to regenerate Newport by 2020.

David Ward, planning and strategy chief at Newport Unlimited, said: "It's a long-term opportunity for Newport, and one of huge regional significance. The site is ideal for the phased development of a new hospital. "This makes sure the opportunity for securing the site for health use isn't missed."

Mr Ward said the NHS Wales capital investment board has written to outline its interest in the site.

The draft UDP will go to a public inquiry in October. Mr Ward said that if by 2011 there were no firm commitment to use the site for a hospital, then "residential use would be feasible".

Newport Unlimited is continuing talks with Corus about the sale of the 44-acre Whiteheads site and a further 46 acres of land behind it.

A Corus spokeswoman said: "Discussions are continuing with public and private bodies. We are conscious of the importance of sites we are vacating."