Car and motorcycle licence holders can now notify DVLA of a wider range of medical conditions online.
This can save up to 10 days for a decision compared to paper applications.
More than 60,000 people have already used DVLA’s enhanced online medical service, which is available 24/7.
Drivers can now visit GOV.UK to check how around 1,600 medical conditions may affect their driving and, where required, notify DVLA online.
Users are able to track the progress of their application online, giving greater visibility and convenience.
Drivers with multiple medical conditions can now renew their driving licence online for the first time, while medical licence holders can also renew their driving licence photo at the same time, reducing paperwork and the need for separate transactions.
There has been a 50 per cent growth in digital uptake over the last year.
Further improvements planned this year will extend online medical notifications into additional customer journeys. This will allow drivers renewing their licence at age 70, first-time provisional licence applicants, and customers whose licence was previously surrendered or revoked, to benefit from online medical notifications as part of those transactions.
Roads Minister Justin Madders said: "Drivers need to be able to report medical conditions quickly and easily. I understand their frustration and that’s why I’ve been working closely with the DVLA to push forward improvements to the services drivers receive.
"This quick, easy-to-use online service is making it easier for drivers to report their medical conditions, making our roads safer for everyone that uses them. This new initiative will save people time and money so they can keep their licences up to date, and it’s already working for thousands of customers using the service."
Tim Moss CBE, DVLA Chief Executive, said: "More than 60,000 drivers have already switched to our online medical service, saving time, avoiding paperwork and benefiting from a faster application process.
"Customers can save up to 10 days by applying online rather than by post. As well as making applications quicker and easier, drivers using the service have collectively avoided tens of thousands of pounds in postage costs.
"With 24/7 access and the ability to track progress online, we’re making it simpler than ever for people to manage their driving licence in a way that works for them."