The Southern District Health Board is hoping it will be able to replace its ageing linear accelerator in Dunedin next year.
Chief executive Brian Rousseau said the board had been preparing a business case to be submitted for funding to the Government's regional capital committee and the national capital investment committee.
It is expected that a replacement for the 17-year-old unit could cost about $6 million.
Mr Rousseau said it was hoped the the replacement could be made in the third quarter of next year.
The existing unit was at the stage where it had ''a few issues'', he said.
A linear accelerator is used for radiation treatment for patients with cancer.
It is also part of the equipment required for radiosurgery where an intense beam of radiation into the brain is used to treat malignant tumours, blood vessel abnormalities and acoustic neuromas.
Dunedin is the only South Island centre providing radiosurgery.
