An Bord Pleanála have granted permission for a new facility to replace the Central Mental Hospital in Dublin.
The National Forensic Mental Health Facility will be built at Portrane, with hopes it will be fully operational in 2018.
The new project will include a 120 bed hospital to replace the Central Mental Hospital, a 10 bed mental health intellectual disability forensic unit, and a 10 bed child and adolescent mental health unit.
Minister of State for Social Care and Primary Care, Kathleen Lynch and Health Minister Leo Varadkar have welcomed the decision.
"Patients, their families and staff will benefit from transferring from an antiquated building to state-of the-art facilities in a new modern forensic setting," Minister Lynch said.
She thanked the Health Service Executive (HSE), Fingal County Council and all others concerned in today's decision.
As part of this project, the design work will be progressed for three 30 bed Intensive Care Rehabilitation Units (ICRU) in Cork, Galway and Portrane. A fourth ICRU is planned for an existing facility in Mullingar.
Minister Varadkar said the progress marked is hugely significant in terms of developments in mental health over the lifetime of the government.
"Looking after our mental health is as important as minding our physical health. Those who need help with their mental health are right to expect treatment in modern conditions. This new state-of-the-art facility will go a long way to meet that demand," he said.
"It's an important milestone on our path to providing modern mental healthcare," he added.