A new Commission on "the Future of Nursing and Midwifery" is to be given 12 months to produce a report for Prime Minister Gordon Brown.
The 17-strong group will consider how to expand the roles of nurses and midwives and how they can be enabled to manage and run their own services.
It will also have to identify skills and support needed by nursing and midwifery professionals.
Health minister Ann Keen, a trained nurse, is to chair the Commission.
She said "huge strides" had been made in establishing nurse consultants, community matrons and midwife-led units.
She said: "Now is the time to bring these advances and challenges together, to help support our nurses to be free to nurse, create opportunities for them to lead change and give them the authority to deliver high quality care for patients."
Members of the group include leaders of the Royal College of Nursing and Royal College of Midwives along with Clare Rayner, president of the Patients' Association.
The chief nursing officer Christine Beasley is a member along with Anne-Marie Rafferty, dean of the Florence Nightingale School for Nursing and Midwifery, London, and Gail Adams, Unison head of nursing.
Dr Peter Carter, chief executive of the RCN, said he looked forward to working on the project.
He said: "Nurses and health care assistants have been central to the vast improvements in the NHS over recent years and the existence of this Commission is
recognition of just that.
"This is the group of health professionals that spends more time with patients than any other, therefore nurses know what's needed to deliver high quality patient care."
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