Three new wards with 84 beds are set to be built at the Royal Stoke University Hospital.
The University Hospital of North Midlands NHS Trust is getting £17.6 million of Government funding to improve capacity and patient flow.
The Prime Minister announced a £1.8 billion cash injection for the NHS.
Boris Johnson said: "Our fantastic NHS staff in Staffordshire work tirelessly to look after their patients and I promised on my very first day as Primie Minister to ensure money for the NHS gets to the front line.
"We're now putting our money where out mouth is, and the Royal Stoke Hospital, part of the University Hospitals of North Midlands, will get £17.6 million to create three new wards and deliver more beds by the end of the year.
"This is great news for patients, and great news for our hardworking NHS doctors and nurses."
Tracy Bullock, University Hospitals of North Midlands Chief Executive, said: “We are delighted with today’s capital investment announcement from Department of Health and Social Care to help improve capacity and patient flow at our Royal Stoke University Hospital site.
“UHNM is one of the largest NHS trusts outside of London and Royal Stoke is one of the busiest in the country with constant pressure on our beds.
“This investment will provide us with the flexibility to bridge the expected winter bed gap while helping us and our system partners to develop alternative models of care to ensure patients who are fit to leave hospital have the care they require in the community.”