Minister for Children Katherine Zappone is to restore funding to Scouting Ireland for three months after receiving commitments that recommendations of an independent review will be implemented.
The situation will then be reassessed in September.
Earlier, Scouting Ireland said its entire board will resign to allow for new governance after the controversy surrounding the handling of a rape allegation.
In April, Minister Zappone suspended State funding to the organisation over grave concerns about its governance.
It followed an allegation by a female scout leader in 2016 that she had been raped seven years earlier while on a scouting trip when she was 18.
The man whom the allegation was made against was suspended from the Scouts pending an investigation.
The Director of Public Prosecutions decided not to prosecute. However, he was not garda vetted before returning to the Scouts, despite a recommendation by gardaí.
In a letter sent to all its members yesterday, Scouting Ireland said it fully supports new governance.
It said to allow a new board to take office "current members of board have confirmed their decision to resign effective 31st October 2018 and this is a very strong endorsement by these board members of the new governance and board structures".
It added: "If we do not reorganise and restructure with new governance arrangements we will not be able to function as a national organisation.
"The restoration of funding by Minister Zappone is contingent on Scouting Ireland among other matters, being able to demonstrate a commitment to good governance, and a vote in favour of the new board structures is an important step in that journey."
Scouting Ireland has met officials from the Department of Children and Youth Affairs to discuss the future funding of the organisation and to renew Scouting Ireland's commitment to its governance review.
Following the announcement of the funding restoration, Scouting Ireland said that all events planned for the summer would go ahead.
There are 13,000 adult volunteers and 35 paid staff in Scouting Ireland.
It has 40,000 youth members, making it the largest youth organisation in the country.