The head of Westminster council has given his backing to the troubled £800m PFI hospital planned for Paddington in west London.

Peter Rogers, chief executive of the council, wrote to the team behind the Paddington Health Campus scheme last week.

His letter to chief negotiator Ian Robertson on 19 November also confirmed that surplus land at the North Westminster Community School may be used for the project. Sources close to the scheme said that the use of the Chelsfield-owned Grand Union site for the project was in doubt.

Rogers’ letter said: “Westminster believes that the Paddington Health Campus scheme provides compelling clinical, community and economic benefits and to that end it has offered the North Westminster [site] in order to facilitate the best possible outcome.”

A deadline of 22 December is understood to have been set for a fresh outline business case for the scheme to be submitted to the government.