More than 120 childcare projects are to be allocated grant assistance totalling almost €50 million to help them to open new facilities and fund existing ones.
The allocation will lead to the creation of 2,900 new childcare places, according to the Department of Justice, and will support or enhance more than 2,000 existing places.
The grant assistance, provided under the Equal Opportunities Childcare Programme, will benefit a range of community-based and private childcare providers. The funding is provided by the Government and the EU.
The full list of childcare providers who will benefit from funding will be made available from the department in the coming days.
The announcement is separate from Government plans for a childcare package due to be contained in next month's budget.
An interdepartmental group has been examining wider childcare plans relating to improved access and affordability.
It has finalised seven basic proposals, of which it recommended that one or two should be pursued immediately, according to the Taoiseach.
The strategy, drawn up in consultation with the National Children's Office, includes a range of proposed measures such as increases in child benefit, tax relief, extended paid parental leave and a subsidised pre-school or kindergarten scheme.
The report points out that increases in child benefit would be costly and would run into several hundred millions of euro. The overall cost of child benefit to the State is €1.9 billion
On the other hand, the report says tax breaks, without an increase in supply of childcare places, may not impact on the affordability of child care.
The report also points out that the average cost of childcare in some parts of Dublin is between €800 and €900 a month, but is less expensive outside the capital.
Ministers who are examining the plans are expected to agree a five-year plan on foot of the recommendations aimed at developing childcare facilities across the country.
A number of Cabinet Ministers have signalled that increases in child benefit may form part of the package. These may prove politically attractive as the measure would benefit both stay-at-home spouses and working couples.
Minister for Finance Brian Cowen has refused to speculate on the likely contents of the package.
Another document being considered by Government is the report of the National Economic and Social Forum on childcare. This calls for the introduction of a universal pre-school service for all three-year-olds and the extension of maternity benefits, as part of an overall State investment package in childcare.
The forum proposed that paid maternity leave be extended to 26 weeks on an incremental basis to 2009.