The Welsh Government has announced that a neonatal intensive care centre will be located at Ysbyty Glan Clwyd in Denbighshire.
The Bodelwyddan location for the sub-regional site to treat premature babies was chosen in preference to Wrexham Maelor Hospital.
First Minister Carwyn Jones said he accepted the recommendation of an independent panel, which said that Ysbyty Glan Clwyd emerged as the best option for those living in the west of North Wales, and for those in the most deprived communities.
He said: "I recognise the challenges and risks the panel highlighted in its report, and these will need to be addressed by the health board before the development of the [neonatal site] can go ahead at Ysbyty Glan Clwyd."
The First Minister stepped in at the end of last year, to confirm that some newborn babies would continue to be cared for in North wales, although the sickest and most premature babies will still be transferred to Arrowe Park Hospital on the Wirral.
First Minister Carwyn Jones has announced plans to develop a new centre in North Wales to treat babies who need extra care. But he told AMs the most ill babies would still be sent to Arrowe Park on the Wirral for specialist treatment.
He also explained to AMs why he was rejecting proposals in an independent report to treat all babies needing extra care in the north.
The First Minister says steps will be taken to ensure there will be a neonatal care centre in North Wales in the future. Carwyn Jones says he's listened to independent advice on controversial health board plans to move neonatal services to Arrowe Park on the Wirral.
But he told AMs that Arrowe Park will continue to be used for specialist care even in the long term. Carwyn Jones said that a site will be chosen for a new neonatal care centre and announced shortly.