The Duke of Westminster’s dream of setting up a national rehabilitation centre for injured soldiers has moved a step closer to becoming a reality.

The Chester-based duke, who rose to the rank of Major General with the Territorial Army, bought Stanford Hall in Leicestershire for that purpose in 2011, as part of an initiative he has been pursuing over five years.

Now the Ministry of Defence has revealed the current rehabilitation centre at Headley Court in Surrey will move into Stanford Hall from where it is due to begin operating in 2018.

The £300m centre will provide 21st century clinical facilities for the armed forces.

Air Marshal Paul Evans, the MoD’s surgeon general, said: “Thanks to the Duke of Westminster’s initiative and his generosity and that of other benefactors, a new state-of-the-art medical rehabilitation centre will provide our injured troops with a remarkable place to recover and begin rebuilding their lives.

“The new centre will build on the legacy of the Defence Medical Rehabilitation Centre at Headley Court and the significant support it has received from many Forces charities including Help for Heroes, The Royal British Legion and SSAFA. It will also provide the bedrock of the capability development for musculoskeletal injuries for the next 20 or so years.”

Although the MoD does not own Headley Court it has spent about £30m on improving the facilities. Help for Heroes, which has donated more than £8m to the centre, said all of its funded facilities will be transferred to Stanford Hall.

Bryn Parry, co-founder and chief executive officer of the charity, said: “The whole cost of this is being met by the Duke of Westminster's charity so every pound generously donated to Help for Heroes will continue to make a massive difference.”

Prime minister David Cameron said: “There is no greater example of our commitment to the Armed Forces Covenant than providing first class medical care and rehabilitation to our wounded, injured and sick personnel.”