The TV licence fee will go up by €3 to €158 per year from October next following a review by the Government.
This increase will give RTÉ an extra €2m in funding for 2006 and €4m in a full year.
The decision comes after an independent review of RTÉ's performance in 2005 by Indecon Consultants which found that the national broadcaster had broadly fulfilled its corporate and financial commitments and its output commitments on TV, radio, in publishing and performing groups.
The Minister for Communications, Marine and Natural Resources, Noel Dempsey, said there was a strong case for approving the increase.
He said the extra money would help RTÉ further strengthen its service.
The increase is less than the current rate of inflation but has been welcomed by RTÉ.
The RTÉ Authority Chairman, Mary Finan, said the fourth consecutive yearly increase was a vote of confidence in RTÉ and its programming.
The increase was recommended subject to RTÉ bringing forward proposals in a month, based on the Indecon recommendations.
The proposals are to detail how RTÉ can provide a greater assurance that it is meeting its commitments to the public and providing value for money, and that it will engage with the Government over its strategic corporate plan.
