Midland health managers are to spend at least £500 million on transforming acute hospital services around the Black Country.

The Manor Hospital, in Walsall, and New Cross Hospital, in Wolverhampton, will now be redeveloped to offer patients "future-proof" health services for the 21st century.

Five new primary care centres are also included within the scheme, as is the new Gem Centre for children and young people, currently under construction at Bentley Bridge.

Royal Wolverhampton Hospitals NHS Trust and Walsall Hospitals NHS Trust will work together to support their redevelopment plans.

A three-month public consultation exercise is due to be requested by Birmingham and the Black Country Strategic Health Authority. While both sites will retain acute hospital services, including A& E departments, there is a possibility of some job losses - including one of the chief executive positions - depending on the outcome of the consultation.

A spokeswoman for the Black Country Review Implementation Board said no frontline positions would be lost and 99 per cent of other jobs would be safe. The multimillion pound scheme also aims to recruit more doctors for better clinical care and improve access to services so fewer people have to go to Birmingham for treatment.

These proposals form part of the ongoing work linked to the Black Country Review, on the future of hospital services in both areas.