The way has been paved for the Dublin Institute of Technology (DIT) to move to Grangegorman under the terms of a Bill before the Dáil today.
The Grangegorman Development Agency Bill resumed its second stage hearing this morning.
The Bill provides for the setting up of the Grangegorman Development Agency, which will take on the task of planning the phased relocation of the institute to the 65-acre site of the former psychiatric hospital in central Dublin.
The Minister for Education, Ms Hanafin, said the move by the DIT to Grangegorman would allow the institute to maximise its potential, not only as a "top-class educational facility", but also as a valuable community resource.
"The relocation of DIT, which is spread over 30 different sites in Dublin, to a 65-acre campus in Grangegorman will enable the institute to provide better academic and support services for its nearly 20,000 students," Ms Hanafin told the Dáil.
"It will also allow for much greater academic and social interaction between students of many different disciplines, providing dynamic environment for a broad third-level education in the heart of Dublin city centre."
The Taoiseach welcomed the second reading of the Bill.
"As a community campus, DIT at Grangegorman has excellent potential to enhance not only the educational facilities in the north inner city, but also to contribute significantly to the cultural and social life of the area," he said.
"I would like the Strategic Development Plan for the site,which will be drawn up by the new agency established under this Bill, to incorporate a substantial amount of access for local residents, particularly to the sports and recreational facilities," Mr Ahern added.