Health Minister Tony Ryall has given approval to the Northland DHB to invest $25 million for stage one of the redevelopment of Whangarei Hospital.

Mr Ryall says, "The DHB is proposing some significant improvement of services, particularly in the area of mental health.

"It means there will be more mental health treatment options at Whangarei Hospital including the establishment of sub-acute facilities.

Most of the Stage One work involves development of a new Acute Mental Health Unit with 25 beds, a new hospital kitchen facility, and some other site work which needs to be completed before future redevelopments can start.

Mr Ryall says, "Clinical involvement in the development of the project is crucial to ensure that the services to be delivered are complemented by the new facilities being built.

The money is coming from the DHB's cash reserves, so no new central funding is required for this stage of the development.