Although the East of England Strategic Health Authority (SHA) has pledged that all assets and staff will remain with the NHS, private companies are likely to be given the opportunity to bid for a contract to run medical services.

The announcement was made by a representative of the SHA at a meeting with Cambridgeshire County Council earlier this week.

Private firms Interhealth Canada and Anglia Health Solutions have previously expressed an interest in taking a major role in the hospital.

As well as private companies, other larger trusts, such as Addenbrooke's Hospital are the likely contenders for the franchise.

It has previously been announced that the existing Hinchingbrooke Healthcare Trust Board is to disband in April next year, but this SHA announcement was the first formal indication of the new structure that will replace it.

At the meeting of the council's Health and Adult Social Care Scrutiny Committee, Dr Stephen Dunn of the SHA revealed tendering for someone to run clinical services was the "emerging solution".

He added: "We will be going through a competitive process so you can be absolutely sure we will be getting the best deal for Huntingdonshire."

Hospital chief executive Mark Millar revealed at the meeting that the hospital, which broke even last year, has no plans to sell off any of its land, as suggested in last year's consultation on the its future. It also emerged that the hospital's historic debt of almost £40 million is unlikely to be dropped.

The SHA is planning to run a 12 week public consultation on the new set-up, but only on the implementation of the arrangements after a new partner has been chosen.