A decision on whether Ludlow will get a new £30 million hospital could be made as early as January.

A town health campaigner said that he was optimistic about the plans.

Peter Corfield, chairman of the Ludlow Hospital League of Friends, said: “I know one shouldn’t count chickens before they hatch but rarely have I felt so optimistic.

“To think that only 18 months ago we were engaged in a confrontational campaign against hospital closures in south Shropshire and today we are co-operating fully with the Primary Care Trust to improve and expand our local healthcare facilities.

“Work is progressing well on proposals for a community venture to develop the hospital.

“It will be January at the earliest before we know if Ludlow has been selected as a community venture pilot site by the Department of Health and will receive the associated funding.”

Officials behind the plan still need to identify where the hospital will be built.

Mr Corfield added: “No specific potential sites are being discussed with the PCT at this time.

“If Ludlow is chosen as a pilot community venture – it is one of six being considered – then we should get access to a share of £250 million available nationally for capital development.

“A bid has also been made by the PCT for separate Department of Health capital money to redevelop the hospital.”