The National Rehabilitation Hospital in Dun Laoghaire is to get a new 120 bed facility.
The new building will cost 15 million euro.
The facility will be constructed on the current site of the hospital at Rochestown Avenue.
Planning permission was granted by An Bord Pleanala earlier this year.
The hospital provides rehabilitation for crash victims and people who've had strokes.
The existing wards will be replaced by a new facility that includes integrated therapy services.