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Subject to planning approval, work will begin in the next few months and expected to take three to four years to complete.
Earlier this month, the Minister approved the acquisition of the full Cardiff Royal Infirmary site.
This will allow the site to be utilised fully to improve access to healthcare for the people in the south and east of Cardiff and help to relieve pressure on the University Hospital of Wales.
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An Assembly Government-commissioned report, prepared by Dr Stephen Hunter, recommends a phased development of services which will include primary care, unscheduled care, community mental health, substance misuse, outpatients and diagnostics.
Further work will be required by Cardiff LHB and Cardiff and Vale NHS Trust to explore opportunities for in-patients within the resources available.
Initially, £3million funding from the Assembly Government will be invested in preparing for the developments, including demolishing the unused, outdated buildings and installing a new heating system.
Mrs Hart said: "Cardiff Royal Infirmary, with its location within the city, is well-placed to provide a range of services for local people. I am pleased that this site will now be used to its full potential. This initial work will pave the way for better healthcare services.
"Because of its historical status, the redevelopment of the site is being planned in collaboration with Cardiff Council and Cadw in order to preserve the special architectural interest associated with some parts of the site."
(CD/BMcC)
