The Merchants Quay Project has been chosen to operate the first supervised drug injection centre in Ireland.
The HSE has awarded the contract to the support group on a pilot basis, subject to planning permission.
Minister for the National Drugs Strategy Catherine Byrne says support from local residents and businesses will be key to its success.
Minister Byrne described it as "an important public health initiative" to try and stop people injecting on the streets.
"This pilot facility seeks to bring vulnerable people into a safe and clean supervised setting while also helping to reduce drug litter and open injecting in our communities", she said.
Tony Geoghegan from Merchants Quay Ireland described the centre as a "positive step in taking a proactive and progressive approach to drug policy".
A family member of a person living in addiction explained that the centre will bring them "great peace of mind to know their son "will have the chance to meet with a professional" who "can listen to my son and offer the chance of real change".
Dr Eamon Keenan from the HSE's Addiction Services said he hopes the service will improve users' health and give them access to "a range of medical and social services, and contribute towards a reduction in drug related deaths.”
The HSE has said that specific structures will be put in place to ensure "comprehensive operational, clinical and supervisory governance arrangements."