Minister for Children and Youth Affairs, James Reilly, welcomed the news and said it was a "great day for all the children of Ireland".
He said: "The announcement means that we can look forward to world class treatment for our children in a world class environment.
"The national children's hospital is a project that I championed when I was Minister for Health and I am delighted as Minister for Children and Youth Affairs to see it getting the go-ahead today.
"I want to congratulate the great team that got the planning permission over the line, and wish those building the hospital every success. I look forward with confidence to the future of this facility and to the vital service it will provide."
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Minister for Health Leo Varadkar also welcomed the announcement and described it as a "massive milestone for Irish children".
He said: "It will be the single biggest capital project in the history of Irish Healthcare. The outgoing Government approved funding for the project and included it in the Capital Plan 2016-21. Enabling works will begin this summer.
"The children's hospitals at Temple Street, Crumlin and Tallaght have always provided superb care to children, but they’re operating within restricted and outdated buildings. The new building at St James's will allow doctors, nurses and healthcare professionals to do what they do best in a purpose-built facility.
"The decision also means that work can start on two satellite centres at Connolly Hospital and at Tallaght, providing services right across greater Dublin. These will open in 2018. And the new Children's Hospital will support regional hospitals across Ireland to ensure that services are provided as close to home as possible. Permission has also been granted for the research centre."
(CD)
