The military rehabilitation centre at Headley Court in Surrey will move to a stately home in the East Midlands, the Ministry of Defence said today.
The new Defence and National Rehabilitation Centre (DNRC) will be based at Stanford Hall, near Loughborough.
Building work could start next year, with the £300 million centre due to be operational in 2018.
The cost of setting up the DNRC will be met by a fundraising campaign led by the Duke of Westminster, who has bought Stanford Hall.
The stately home was chosen for its central location, size, rural setting and proximity to the Royal Centre for Defence Medicine at the new Queen Elizabeth Hospital in Birmingham, where wounded members of the armed forces are treated prior to clinical rehabilitation.
Stanford Hall will be a national facility, meaning the general public can access the expertise used to treat injured soldiers.