Minister for Justice Alan Shatter has confirmed that an accommodation centre for asylum seekers in Galway city is to close.
Up to 300 residents at Lisbrook House will be relocated to new locations in Galway and other parts of the country.
Mr Shatter had indicated he would review the decision, which was first announced a month ago.
However, Fine Gael TD Seán Kyne said the minister had confirmed to him in a letter that the original decision will stand.
Many parents at Lisbrook House had expressed concern about the disruption to their children's lives and education at the start of a new school term.
In his letter, Mr Shatter said the problem with keeping the centre open until the end of the school year in 2013 was due to cost.
He said the Reception and Integration Agency had nearly 15% more accommodation than it requires and the State does not have the luxury of paying for accommodation it does not need and which will remain empty.
He said the closure would save over €2 million in the next 12 months and this funding can be put to better use.
The minister said disruption to residents will be minimised and families with secondary-school children will be offered alternative accommodation in Galway so that children can continue to attend their current schools.