Purley Memorial Hospital is set to receive £11m for refurbishment.
Health Secretary Andrew Lansley announced the funding today as part of a £100m cash boost for hospitals.
The money will be spent on bringing together a range of services including GP practices, learning disability services and urgent care under one roof.
Mr Lansley said: “We have saved money in central capital budgets this year which means we can spend more money on improving NHS facilities.
“This will mean that more patients in London will benefit from the latest world class equipment.” Dr Andy Mitchell, medical director at NHS London, added: “We welcome this funding which will help us to bring new treatments to our patients.
“This will only further enhance our focus to improve care for Londoners by making the NHS more efficient for people in the city, saving money, improving treatment and saving lives.”
The funding announcement comes as health services in Croydon are facing a major shake-up.
A widescale review into service in south west London has recommended an accident and emergency and maternity ward close.
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