St Vincent's University Hospital in Dublin has said it is ready to go to tender for a new €40m unit, which will include dedicated facilities for people with cystic fibrosis.
The hospital has welcomed the announcement last night by the Health Minister that the unit will be operational as soon as possible in 2011.
Under a new funding proposal, the builder will be paid at the end of construction.
The hospital said it had already secured planning permission.
Cystic fibrosis patient and campaigner Orla Tinsley has given the news a cautious welcome.
She said people with cystic fibrosis will want to meet the Health Minister to discuss the fine detail of how the project will work.