€400,000 was committed at the north-south ministerial council for a feasibility study of a bridge linking Co Down and Co Louth.
The proposed cross-border bridge is at Narrow Water Castle in Co Down.
Social Development Minister Margaret Ritchie said the bridge was no longer just a concept but a live project which would boost tourism and the local economy.
The study was agreed by Ms Ritchie and Minister for Foreign Affairs Dermot Ahern at the north-south ministerial council in Dundalk yesterday.
Ms Ritchie said, 'The new bridge joining Narrow Water in the north with Cooley in the south will be an exciting gateway to Co Down.'
'The bridge will be a living symbol of our growing co-operation,' she said.
'At the very least a bridge would be a big time saver, with people able to make a journey in a few yards which at present took many miles and greatly help tourism in the area,' she said.
Mr Ritchie said the bridge would 'make it very convenient for thousands of overseas tourists to easily visit both parts of the island bringing a big economic boost to the area.'
