John Howard has pledged $12 million funding for a refurbishment of a rehabilitiation hospital in his own marginal seat of Bennelong.

The announcement follows local fears that Putney’s Royal Rehabilitation Centre, in Bennelong, would be sold off.

Howard said a small section of the hospital would be sold, but that a returned Coalition government would help expand and improve services.

"It is my hope that this additional funding will provide the basis for the continuation in a modern and effective reconfiguration of this wonderful service here at the Royal Rehabilitation Centre," he said.