Plans for the future of end-of-life care services in South Tyneside have been agreed.
South Tyneside's Clinical Commissioning Group (CCG) said it will improve services for people who prefer to die at home and open end-of-life bedrooms at a South Shields nursing home.
Campaigners said they will still push for the CCG to re-open Jarrow St Clare's Hospice.
The CCG agreed to spend £1.5m a year on its new model of care.
Matt Brown, the CCG's executive director of operations, said the new system meant "more people can choose where to spend their last days, knowing that high quality support will be on hand".
"Right now, there are no end-of-life beds in South Tyneside," he said, adding: "Today's decision means that can change."
He said about 50% of deaths take place in hospital, 30% at home, 15% in care and 4% in hospices, the Local Democracy Reporting Service said.
Hospital doctor Dr Tarquin Cross said: "The most difficult moments often come when someone wants more than anything to be at home, but we don't have the necessary services available to make that happen.
"This new model will change all that and help more patients to have the best possible experience, in the place they want to be."
Haven Court nursing home is based on the same site as South Tyneside District Hospital and will have four rooms, which could be increased if needed.
Jarrow St Clare's Hospice closed in 2019 after the independent charity that ran it went into liquidation.
Campaigners have previously fought to return services to the hospice site at Primrose Hill, with a 13,669-signature petition produced.
Former nurse Kay Smith said the CCG may have made the decision "but we're not finished" and "public opinion needs to count".
The campaigners say the hospice is more suitable for end-of-life care than the nursing home as it has a quieter environment.