The FAI has been given grants for dressing rooms and two full-sized pitches next to its headquarters in Abbotstown in Dublin.
FIFA have promised $500,000 (€388,852) and the Government will add €500,000 to the project.
The FAI says the funding wiil provide training facilities for elite players and underage international squads.
Work at the National Sports Campus is expected to begin in March 2013.
FAI CEO John Delaney said: “FIFA’s grant means a lot to the association as it assists the FAI in achieving one of our strategic objectives in developing a National Sports Academy.
“By working together in partnership with the Government, the FAI will be able to realise an important piece of infrastructure that will be of great assistance in developing our young elite players, coaches and referees of the future.”