Newark Hospital could re-open to round-the-clock admissions as the number of operations and outpatient appointments increases.
The Say Yes to Newark Hospital campaign group welcomed the news and said more people asking to be treated at Newark had had an effect.
The MP for Newark, Mr Patrick Mercer, said the move was not backtracking but indicated that the health authorities were listening to local opinion.
Mr Mercer said he was delighted. He said it followed hard work building a clinical case for the hospital.
He said: “It shows the authorities are listening. As far as I am concerned, whatever decisions were taken in the past were the wrong ones, and they now have the sense and courage to listen to the case for the hospital.”
After the Newark Healthcare Review the hospital stopped taking admissions between 6pm and 8am.
Independent watchdog Monitor suggested last year that the hospital was 50% under-used, and that meant lost revenue for Sherwood Forest Hospitals Trust, which runs it.
The chief officer of Newark and Sherwood Clinical Commissioning Group (CCG) Dr Amanda Sullivan, said work was underway to admit more people to Newark and should be completed by the summer.
Dr Sullivan said Newark Hospital was a key focus for the CCG and it was working with the trust on developing further services.
She said: “In terms of 24/7 admissions, doctors from the CCG, hospital and ambulance service are working together to determine the safety and viability of patients with certain conditions being admitted to Newark Hospital, rather than being transferred elsewhere.”
Mr Paul Baggaley, the SYTNH secretary, said: “We feel that people are realising that Newark will have to re-open to admissions to take pressure off King’s Mill and Lincoln hospitals.
“Going to King’s Mill and back is a waste of time and money.
“Having more staff out-of-hours at Newark would improve the service and save money.”
The campaign also welcomed Freedom of Information statistics showing a rise in outpatient appointments and theatre operations at Newark in 2012.
The figures show that in 2012 there were 73 more outpatient appointments at Newark, 1,948 more outpatient follow-up