One of the state's only adoption agencies has dramatically closed following a funding crisis, leaving more than 60 couples that had initiated an inter-country adoption in limbo.

The Sunday Business Post reports that Arc Adoption, one of just two agencies authorised to facilitate inter-country adoptions, told clients last week that it was 'winding down its operations with immediate effect'.

The crisis is said to be down to the Department of Children's decision to retrospectively pull Arc's funding.

The Adoption Authority said they would take over 11 of the cases that were at an advanced stage.

Responding to authority's claims that they did not expect delays for those in the middle of the inter-country adoption process, Arc Adoption founder Shane Downer told the paper "the Adoption Authority has no effective contingency plan".

"We are trying hard to pass files over in a careful and orderly way, but given our experience I would not be confident that people will not suffer," he added.