The Government are set to bail out the new Royal Liverpool Hospital development.
Uncertainty has hung over the £335 million project since it ground to a halt at the beginning of the year following the collapse of construction giant Carillion.
Further problems arose earlier this month when it emerged that Carillion had installed cladding on the new hospital which breached fire safety regulations.
But Sky News claim that the development is now set to receive Government intervention with plans to terminate the Royal’s private finance initiative (PFI).
Ministers would take public ownership of the rebuilding project, which is expected to be announced at Tuesday’s meeting of the hospital’s trust board.
The new Royal was initially forecast to be available for handover in March 2017 and revised to February of this year in line with a series of delays.
Carillion’s demise has added further setbacks to the opening date with NHS chiefs admitting that the site was unlikely to be ready by the end of 2018.
A two-week deadline had been set to resolve the hospital’s future or risk the project going out to tender again, a move which risks years of inaction.