The deal follows a year-long dispute, described by the Minster for Health as "an unedifying spat"
The Taoiseach has described as “truly memorable and historic” an agreement on a new national maternity hospital in Dublin.
The agreement will see the National Maternity Hospital moved from Holles street to the St Vincent’s Hospital campus.
Holles Street and St. Vincent's had been at odds over the governance of the facility - but have now reached a deal after mediation.
A planning application for the €150m redevelopment of the St Vincent’s Hospital campus at Elm Park is set to be lodged in the New Year with hopes the new facility should open in 2021.
Enda Kenny welcomed the deal and said the women and babies of Ireland are the big winners:
The Department of Health said the new hospital will ensure that women “receive their care in an environment where their need for dignity and privacy is respected.”
In a statement the department said the co-location will ensure that women have immediate access to acute medical or support services and will increase the overall safety profile of the service.
The agreement will see the formation of a new company - The National Maternity Hospital at Elm Park DAC.
The company will be 100% owned by the St Vincent’s Hospital group, however it will operate with clinical and operational independence in the provision of maternity, gynaecology, obstetrics and neonatal services.
The Minister for Health, Simon Harris said both hospitals have made significant efforts over recent months to reach a resolution.
“At the outset I asked both hospitals to be flexible and innovative, to be open to change, and to demonstrate real leadership,” he said.
“It is clear that both hospitals listened and - motivated by the desire to provide women and infants with the best possible sustainable service on the Elm Park Campus - have through this agreement, demonstrated real leadership.”
He said the National Maternity Hospital is a “national treasure” that has cared for many thousands of women and infants since it was built in 1894.
“The move to the Elm Park Campus will ensure the continuation of the ethos and tradition of the National Maternity Hospital, in a modern environment which meets best international standards,” he said.