The first visible step to move healthcare for all youngsters to one hospital will start with the creation of a Children's Assessment Unit in space next to the Accident and Emergency department.

Health bosses announced in 2007 that they were going to move all children's inpatient services to LGI at a cost of £25m.

That came after months of uncertainty over the future of Leeds' long-awaited dedicated children's and maternity hospital.

Earlier that year it was revealed plans for the hospital – which the YEP successfully campaigned for – had been shelved after its cost spiralled to £650m.

Following an outcry from the parents of sick children, health chiefs came up with the alternative plan to move services to LGI as they said they could not currently afford to build the new hospital.

The aim is to stop desperately ill children having to be transferred between LGI and St James's Hospital.

Moving in-patient care for youngsters to LGI involves working out what space is available, relocating some departments and consulting with staff and parents.

Medics have been meeting every week to develop the plans and hospital bosses have also shared these with parents at meetings.

Paediatric consultants have drawn up the blueprint for the new £700,000 assessment unit which is expected to be complete in January 2009.

Helen Barker, the divisional general manager who looks after children's services at Leeds Teaching Hospitals NHS Trust, said: "Our principle is to ensure we have the right clinical models in place with services and departments developed to support them.

"We have ensured sufficient time has been taken to do this as well as thinking about how to keep disruption to a minimum when the building and then moving commences."

She said regular updates on the work would be provided.

By spring next year approval for all the changes should have been granted, so the main work to create new children's facilities at LGI can get underway.