The US State Department has decided to reverse its decision to eliminate funding for the Mitchell Scholarship programme, according to the US-Ireland Alliance which organises it.
The decision will allow the programme to accept applications from students wishing to be a part of the class of 2014.
Last June it emerged that funding of the project, set up 14 years ago to mark Senator George Mitchell's contribution to the peace process, was to be pulled.
Under the programme each year a dozen outstanding students from the US are given a one-year postgraduate study place in Ireland.
Several hundred students usually apply.
The US-Ireland Alliance said it was happy to report the news, which would allow it to accept applications and hold the selection process in the autumn for the class of 2014.
In a statement on its website, the alliance said the discussions about the level of funding beyond 2014 would continue, but an assurance has been given of a floor amount that will allow it to commit to scholar applicants.
It said work will continue to raise an endowment as quickly as is reasonable in the current economic climate from individuals, corporations and foundations who care about Ireland and/or educating America’s future leaders.
