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The state government has labelled a new six-storey block to be built at Royal Perth Hospital as a 'game changer', with two floors allocated for a new emergency department and extra floors to increase capacity.

The latest announcement comes after Premier Roger Cook said his government will divert funding from the abandoned Perth Convention and Exhibition Centre upgrade to expand the state's under-pressure hospital system at a cost of $1.5 billion.

Cook said the project will be funded out of the new $1.5 billion Hospitals Fund, which is made up of $500 million committed in September, with a further $1 billion announced yesterday.

"It means my government's total health infrastructure spare commitment is around about $4.7 billion during this term of government, making it the largest hospital building program in the state's history," he said.