Brian Cowen said the Dáil government would return to backing the Middletown Centre of Excellence - despite cutting its cash back in May, which left the centre's future in doubt.
The rethink was announced at a meeting of the North/South Ministerial Council, which involved the Irish Taoiseach Mr Cowen, and NI's First and Deputy First Ministers in Limavady.
Up to now, education departments in Northern Ireland and the Irish Republic have been equally financing the Middletown project and after the centre was approved in 2002, some £6m has already been spent on the centre.
However, the next stage - building a residential block for assessment and therapy, and employing extra staff - was in jeopardy because of the shortage of funds.
NI Education Minister, Caitríona Ruane, has said that an updated plan for future development of the Middletown Autism Centre will go ahead as soon as possible.
The Minister was speaking after the Department for Education and Science in the south confirmed that they had lifted the pause on capital funding for Middletown.
-- Advertisement --
The Minister said: "Middletown is a joint north–south initiative and I welcome the announcement that funding will now be available from the Department for Education and Science to move ahead with a new phased development plan.
"Funding from my Department continued to be available to Middletown during the year and this important project has already provided training to hundreds of professionals," she said on Monday.
"A new phased multi-annual plan for the future development of the Centre will be developed in conjunction with the Board and will take account of international best practice and the development of autism services on the island of Ireland since the Centre was established.
"Middletown will be dedicated to improving and enriching the educational opportunities of children and young people with autism."
Also, at the meeting on Monday, plans to progress a new road project from Aughnacloy to Londonderry and on to Donegal were also agreed with the economy and ways in which the North and South could cooperate more to the advantage of both parties, also discussed.
In November, proposals to improve the 15-mile stretch along the border in Co Monaghan looked unlikely to be fulfilled.
The busy stretch of single carriageway runs from the Castleblayney bypass to the NI border at Moybridge near Aughnacloy.
In 2007 the Irish government said that €34 billion (£30.5bn) was to be invested in infrastructure under the 'Transport 21' programme including the development of dual carriageway from Dublin to Londonderry and Donegal.
However, no timescales were given about work on remaining single-carriageway stretches south of the border and councillors said there were indications that the route near the border was part of government plans.
It was reported at the time that correspondence from the Irish Department of Transport to Monaghan County Council appeared to cast doubt on the project.
Now, that may be set to go ahead after all.
See: Monaghan Project At 'End Of Road'
(BMcC/KMcA)
