An 11-bed ward at Bridlington Hospital will close following a consultation.
In September a consultation began as Waters Ward, at Bridlington Hospital, closed temporarily due to "recruitment pressures".
The ward stopped admitting patients from September 22 and it was closed on October 1 for a temporary three-month trial while a public consultation will be held.
York Teaching Hospital Foundation Trust has announced that the resources from Waters Ward and Johnson Ward will now merge into one.
A spokesperson for York Teaching Hospital NHS Foundation Trust said: “We know that historically we have had empty beds on Waters and Johnson wards at Bridlington Hospital, and through the work we have done to improve the way we deliver rehabilitation services we have been able to consolidate our beds and resources at Bridlington from two wards into one.
“This has allowed us to move staff to Scarborough Hospital to support acutely unwell patients from both Scarborough and Bridlington.
“Since the temporary changes were introduced, all patients needing a rehabilitation bed in Bridlington have been accommodated and there has been no detrimental impact on service. Therefore we intend to work towards making the changes permanent and we are talking to relevant partner organisations to help us develop a plan to do so.
“We will be working with our union representatives to support staff through this transition in the New Year.”