Malvern's new hospital could be built using funds from Malvern Hills District Council.

On Wednesday, council members voted to investigate entering into a partnership funding arrangement with South Worcestershire Primary Care Trust (PCT).

The council would borrow Government money, a cheaper alternative to a Private Finance Initiative.

The construction of the hospital would be funded by the council, while the PCT would fund its operation. The arrangement may free funding for more facilities, including a minor injuries unit.

The council would recoup the cost of borrowing through rent from the PCT.

Council leader Tom Wells said this would not have implications for the Council Tax payer.

"We would not enter into any agreement that would cause an increase in Council Tax," he said.

"It is not for Council Tax-payers to build hospitals."

Coun Paul Cumming said he was concerned the council may eventually end up funding the whole project.

"We should ask the PCT has it got any money available and if it has, when are we going to get it?

"There needs to be a practical commitment from the PCT that they will provide funding and I think all we have is a shaky one."

Coun Wells said he had two letters stating the PCT's firm commitment.

At the meeting, the council officially withdrew its offer to the PCT of the Pickersleigh Depot site for the hospital.

"The public consultation so far has shown that the people of Malvern want the Seaford Court site for the hospital," said Coun Wells.

"By withdrawing the Pickersleigh offer, we can concentrate on what the hospital will include and when it will be built, not where it will be."

The council also voted to seek a published timetable from the PCT for the development of the hospital and to set up a working party to monitor progress and keep pressure on the PCT.