The Health Service Executive has agreed to take control of the Mulross Nursing Home in Leitrim.
In a statement, the Health Information and Quality Authority said the registered provider of the home has agreed to HIQA's decision to cancel his registration.
The HSE will make alternative arrangements for the management of the home.
Mulross Nursing Home in Kilclare, Carrick-on-Shannon, wrote to residents at the end of December saying it was to close and alternative accommodation would have to be found.
The home has operated since 1987 and has capacity for around 30 residents, with 32 staff.
Stephen Buckley, the registered provider, said that the home will not be able to meet the requirements of the 2009 Health Act by January 2014 and had to give notice to residents and staff.
Mr Buckley said that the physical structure and room sizes were issues and the building would not be compliant with regulations.
In recent weeks, Brindley Healthcare was engaged to help manage the home. It is leased from owner Patricia Foley.
Ms Foley today said that the physical structure issues can be dealt with by 2014.
The last HIQA inspection report on the home in May 2012 found that some actions required since the last inspection had not been implemented.
Among the issues of concern were the management of medicines, staffing and recruitment, maintenance of records, notification of incidents and the complaints procedure.
A HSE inspection in 2007 found the home was not complying with certain regulations, including the prevention of infection.