The Mid Yorkshire Hospitals NHS Trust is being given £45.6m by the local Strategic Health Authority, which is funded by the Department of Health.

It is also receiving £11m from Kirklees Primary Care Trust (PCT) and £20.4m from Wakefield District PCT.

Last year the trust was named as one of 17 'financially challenged trusts' nationwide which had asked for loans from the government to deal with its debts.

Then, the trust's finance director Tony Waite admitted that in 2004 it had overspent its budget by £30m but had since been working hard to reduce the overspending.

Financial consultants PricewaterhouseCoopers were called in to examine the debt and found the trust was in no position to repay any government loan, recommending a one-off payment from the government instead.

The Mid Yorkshire Trust's chief executive Julia Squire welcomed the announcement, saying the trust could now move on from its financial difficulties.

She said: "I'm delighted that this financial solution allows the trust to draw a line under the past and we appreciate the Strategic Health Authority and PCTs' support to make this possible.

"Through the hard work of our staff we have improved our financial position and performance each year to a point where we balanced our books in 2007/08 for the first time."

Chief executive of Kirklees PCT Mike Potts said the donation would not affect the ability to pay for doctors' surgeries or other health services in the district.

He said: "The money provided by the PCT will not have an adverse impact on services for Kirklees patients because it is being taken from a fund previously set up by the Strategic Health Authority."