Work on the Midlands Metropolitan Hospital will resume after a deal was reached between the Government and the local NHS Trust.
Construction on the £350 million pound hospital in Smethwick was halted following Carillion's collapse in January.
It's hoped the hospital will now be completed by 2022.
Toby Lewis, the Chief Executive for Sandwell and West Birmingham NHS Trust said it was great news for patients.
The Trust had been searching for a private investment option but earlier this month said they would ask the government to step in and fully fund the rest of its construction.
But Health Minister, Stephen Barclay says taxpayers' money will be spent in 'the best possible way'.
It's not yet known which contractor will be used to complete the rest of the work on the hospital.