Health chiefs have announced plans to merge Basingstoke hospital with the Royal Hampshire County Hospital in Winchester.
Basingstoke and North Hampshire NHS Foundation Trust (BNHFT) is to form a partnership with Winchester and Eastleigh Healthcare NHS Trust (WEHCT).
The move has been approved by NHS Hampshire, which commissions services to both hospitals, and South Central Strategic Health Authority, which oversees them.
The merger follows new government rules that call for all hospital trusts to become foundation trusts by 2014.
For financial reasons, WEHCT must merge to achieve foundation status.
NHS trusts carry out treatment to patients requested by GPs, including surgery.
Foundation Trusts do the same, but differ in that they have greater freedom over the spending of funds they get from the Government.
The two local trusts will become a single foundation trust by April 2012 at the earliest and will serve more than 540,000 people.
Basingstoke hospital said the change will not affect patients but will overhaul its organisational structure.
Health chiefs at the two hospitals are confident that the two trusts can work together.
Mary Edwards, chief executive at BNHFT, said: “This partnership brings together two trusts with great track records in patient care.
“The similarities between our services, the way we work and our core values will, I believe, vastly outweigh our differences.”
Dr Chris Gordon, chief executive of WEHCT, said: “As a doctor, I am pleased to say that this proposal has the strong support of clinicians at both trusts.
“This is absolutely fundamental in the forming of a new, integrated organisation because it will ensure that the needs of our patients remain paramount.”
Senior hospital staff have been meeting to discuss how services could work together for patients and staff through single management teams.
Currently, there are no details about what services will be provided and any major changes will be put to public consultation first.
In a statement, Gina Hanafin, head of communications at Basingstoke hospital, said: “The priorities of both trusts throughout the process will be to put patients first and to continue to provide good quality, well-regarded patient services.”
