Alder Hey children's hospital, which became synonymous with the organ retention scandal, could be closed and moved to a new site, it emerged yesterday.

The move is part of a £1bn plan to transform healthcare in north Merseyside. Proposals include the demolition and replacement of Alder Hey and the Royal Liverpool hospital. Two other hospitals - Broadgreen and Aintree - will be refurbished.

Details of the proposals will be outlined by the North Merseyside Future Healthcare Project this week. Kate Abendstern, its acting director, said: "These proposals represent a very significant reinvestment in the development and delivery of more effective, patient-centred healthcare services for our communities in north Merseyside.

"We cannot afford to ignore the major health inequalities in the area."