The relocation of West Suffolk Hospital to provide a better patient environment "will happen", Matt Hancock has said.
The proposal is to build the new hospital on the 70-acre Hardwick Manor site, next to the current hospital building, as part of the government's pledge to provide 40 new hospitals by 2030.
Matt Hancock, Secretary of State for Health and Social Care, said: "We have committed to building 40 new hospitals this decade and we are getting going with that now.
"You can see we have already bought the land next to this hospital and that is the preferred site but there is a lot of work that needs to happen to get that ready and working with West Suffolk Council on the planning.
"Obviously I hope this could be done well before the decade is over but we have not yet set exact time scales except it will be completed this decade."
The hospital will receive some of the £3.7billion set aside by the government to fund the projects.
"This is a several-hundred-million pound project and we are working on the spending review to finalise that."
The West Suffolk MP said he is pleased with the service that members of staff at the hospital provide, especially given the poor infrastructure.
"Across Bury St Edmunds and the whole of west Suffolk we have a much loved and high-quality hospital in delipidated buildings that are physically propped up and there is a clear need for a new hospital.
"The service people get from the NHS here at West Suffolk Hospital is excellent and that is done despite the delipidated surroundings.
"The 40 hospitals were chosen by working with the NHS at a regional level to identify hospitals most at risk.
"We are then going to have a further eight hospitals and we will be opening a competition for which are the next eight that need doing and I know there are several local hospitals in particular in Kings Lynn that have got the same structural challenges that we have got here at West Suffolk and at Great Yarmouth and that is at the front of my mind."
Money from the scheme will also go towards building a new cancer hospital at Addenbrookes Hospital in Cambridge and rebuilding the James Paget Hospital in Great Yarmouth.
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