Proposals to build a cross-border bridge linking Counties Down and Louth are to be studied.
Almost £300,000 is being spent studying the feasibility of the bridge, which would span Carlingford Lough between Omeath and Narrow Water Castle, near Warrenpoint.
The funding was revealed following talks between Margaret Ritchie and Dermot Ahern at the North-South Ministerial Council.
Social Development minister Ms Ritchie said the plan was "no longer just a concept" and added that tourism in the area would be boosted.
Ms Ritchie also claimed the bridge would be "a living symbol of our growing co-operation".
Regional Development Minister Conor Murphy said the Department of Transport in Dublin has granted €390,000 to Louth County Council for a technical study.
"It has already been agreed that officials from the north and south will share information from the study as well as from the Roads Service's study of the Newry Southern Relief road," he said.
(NS/JM)
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