Wigan Infirmary will be allowed to build a new 28-bed ward to provide extra capacity over the winter months.
Wrightington, Wigan and Leigh (WWL) NHS Foundation Trust has been under pressure to tackle bed shortages there.
Earlier this year, A&E patients had to be moved to other departments after a period of “unprecedented demand”.
Bosses were also warned the hospital would have no resilience to deal with rising patient figures or ward closures, unless action was taken.
Richard Mundon, WWL director of strategy and planning, said in September: “WWL has committed funding for additional beds on the acute site which will not only provide much needed capacity but will also support the trust in implementing new models of care which would reduce the length of time that some patients spend in hospital beds.”