The plan is to build a new hospital containing 234 beds alongside the existing 1863 Victorian listed buildings.
The redevelopment, designed by Oxford Architects Partnership, will be paid for by the Broadmoor Hospital Trust with some funding coming from the government and from selling off land holdings.
Bracknell Forest Council has plans to use the land for house building and it has already been mooted that the existing Grade II Victorian buildings could be converted into a hotel.
Construction of the new 10-ward complex at the high security facility in Crowthorne is expected to start in the autumn of 2013. The Basingstoke office of WSP is main structural consultant.
Vickie Holcroft, programme director for the Broadmoor redevelopment, said: “We’re delighted with the Council’s decision to give this extremely important project the go ahead.
“I hope the council’s backing goes some way in helping the Trust achieve its goals and continuing with the often difficult, but necessary work of rehabilitation of these severely, mentally ill patients.”
In 2003 the ageing Victorian buildings were declared “unfit for purpose” by the Commission For Healthcare Improvement.