Health Minister Edwina Hart says improvement plans at Denbighshire's Glan Clwyd Hospital will bring the hospital into the 21st Century.
Her comments came as she confirmed £5.7m in assembly government funds to pay for the first round of works to remove asbestos found in theatres.
The assembly government is currently considering a bid for funding from the local health board to redevelop the main operating theatre suite.
Separate bids are due to be submitted.
In all, the work is expected to cost £100m, including improvements to facilities and services in accident and emergency and critical care.
The first phase includes removing asbestos found in some operating theatres as well as refurbishing them.
Mrs Hart said: "The work at Glan Clwyd will improve safety and bring a hospital designed over 40 years ago up to 21st Century standards.
"The removal of asbestos will make way for a further programme of refurbishment to modernise facilities.
"This phased redevelopment will begin with the reinstatement of theatres and we will be assessing business cases from the health board for further work at the hospital."