On Tuesday, Cabinet Secretary for Health, Shona Robison, approved the proposals. It means construction work can now progress on the project.
A new hospital or 'hub' will be built in Broadford, with the provision for a smaller 'spoke' facility in Portree.
Granting consent for the development, Ms Robison said: "The board has made a compelling case for change which is supported by the majority of local stakeholders including clinical staff, planning partners, local people and their representatives.
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"I am content that the proposals are consistent with national policy and will provide modern, fit-for-purpose services for the benefit of local people in Skye, Lochalsh and South West Ross."
She added that while NHS Highland had conducted the process "in a meaningful and inclusive way, providing local people with numerous and reasonable opportunities to express their views", she noted the concerns raised by some of the local community who were not in favour of the chosen hospital site.
Garry Coutts, Chair of NHS Highland, commented: "This is fantastic news. We now look forward to continuing to work with the community in the detailed planning of health and social care provision that best meets the needs of everyone in the area.
"I appreciate that our proposals have not been universally welcomed but I hope that, with the Cabinet Secretary having granted her consent, the entire community of Skye, Lochalsh & South West Ross can work together to help us transform our services there."
(JP/CD)
