Health bosses have chosen a contractor to design and build a £36 million replacement for the Royal Alexandra children's hospital in Brighton.

Kajima Europe will build the hospital in the grounds of the Royal Sussex County Hospital in Eastern Road.

It is part of the Kajima Corporation of Japan and its projects in the UK include the Health and Safety Executive's Merseyside headquarters building and the London Borough of Ealing Grouped Schools project.

Brighton and Sussex University Hospitals NHS Trust will take part in detailed negotiations to agree a formal contract with Kajima next spring.

A planning application for the new project is likely early next year.

Children, parents and carers are also being asked what they would like to see at the new hospital and detailed discussions with staff at the Royal Alex are already well under way.

Trust chief executive Stuart Welling said: "This decision allows the trust to begin detailed discussions that should see a new hospital fully designed by next spring and ready for us to occupy in 2007."

The trust will provide clinical and nursing services and educational needs, Kajima facilities and the long-term building maintenance services under a 30-year contract.

The hospital will have 100 inpatient beds, three operating theatres, diagnostic and treatment facilities including X-ray, an intensive care unit, cancer care day centre, parent accommodation and children's play areas.

It will be closer to specialist services such as the Trevor Mann baby unit at the Royal Sussex.

Wednesday November 05, 2003