TORONTO - The Salvation Army says it has reached an agreement with the provincial government and will continue to operate the Toronto Grace Health Centre.

The government's commitment will allow the Salvation Army to plan for the needed infrastructure upgrades required at the hospital, the Salvation Army said in a release.

"This is an exciting day for the Salvation Army and our patients and their families as well as our staff and volunteers," said Commissioner William W. Francis.

The future of the facility, which offers palliative and complex care, had been in doubt after the Salvation Army said it wanted to get out of the hospital business.

The Salvation Army has operated the hospital since 1889.

"I was extremely pleased to hear about the decision made by the Salvation Army governing council to maintain their involvement with the Toronto Grace Health Centre," Deb Matthews, Minister of Health and Long-Term Care, said Wednesday in a release.

"I'm thrilled that we're going to be able to keep working together to ensure that vital services are maintained at the current hospital site," Matthews said.

NDP Leader Andrea Horwath said in a statement she was "delighted" with the decision.