The outline business case for a new hospital for patients with mental health problems was approved yesterday.
Proposals also include an intensive psychiatric care unit and a specialist brain injury unit.
Preliminary works to prepare the site begin this week. This will include the removal of several trees and other debris and the demolition of the recently vacated Scottish Ambulance Service building.
David Small, Chair of the Royal Edinburgh Hospital Project Board, NHS Lothian, said: “This is a very exciting step in the development of this project and we are now within sight of construction beginning later this year.
“The next step is the process is the development of the full business case which we anticipate submitting for Scottish Government approval in September this year.
The redevelopment of the hospital site will be undertaken in partnership with Hub South East Scotland, who have appointed Morrison Construction as the preferred phase one contractor.
The projected timescale for completion of phase one is 2016. The whole project may take up to ten years.