The sisters who run Kylemore Abbey in Connemara say the site is not for sale.
The Benedictine Community says it has partnered with Notre Dame University in America to create a new academic centre of excellence at the former boarding school.
In a statement to clarify earlier reports of the school's sale, the sisters say the partnership aims to advance theirs' and Notre Dame's shared spiritual, cultural, and educational missions.
The landmark building will continue to operate as a tourist venue.
Mother Maire Hickey, the Abbess of the Benedictine Community at Kylemore Abby, said she is "delighted that the University of Notre Dame has responded favourably to our invitation to join our community in advancing our educational and spiritual mission. I have high hopes that this partnership will yield rich fruits for generations to come."