The first fully purpose-built school of music in the country will have a capital cost of just under €60m, and will be running by summer 2006.
Planning permission for the state of the art building had been granted in December 2002, but the project was stalled by escalating costs and Government difficulties in funding.
Campaigners at the school, who had planned to run candidates in the local elections in June on the issue, say they are delighted with the announcement.
Gerry Kelly, a cultural activist at the school, described today's announcement as a giant step forward for the arts, and said he would no longer be running in the elections.
Announcing the approval in Cork, the Minister for Education, Noel Dempsey, said that the Government had always been committed to the project, and that all difficulties with it had now been fully resolved.
The project's delays will mean, however, that it will not be ready in time for 2005, when Cork will be the European Capital of Culture.
