Former Bishop of Galway Dr Eamonn Casey, who is set to return to Ireland, is said to be still at the centre of a garda investigation following a complaint made by a woman.
He will continue to be monitored by gardaí and English police until the investigation is completed.
The current Bishop of Galway, Dr Martin Drennan, has said Eamonn Casey would have no ministry in Ireland, would continue to be under supervision here and would not be allowed unsupervised access to children.
Bishop Drennan tonight welcomed the news that Dr Casey is to return and said no obstacles had been put in his way by either the Irish hierarchy or the Vatican.
Dr Casey visited the parish of Shanaglish near Gort in Co Galway last week. He is set to live in retirement in the area.
There has been a broad welcome to the confirmation that Dr Casey is to return to live in Ireland.
The Archbishop of Tuam, Dr Michael Neary, said he hoped that Dr Casey's retirement would be a private and peaceful one.
The city's mayor, Councillor Brian Walsh, was among the first to welcome the news that the former bishop is to return.
Dr Casey resigned from office and left the country in 1992 after it was revealed that he had an affair with Annie Murphy, an American divorcee, and that he had fathered a child.