Excavation works are expected to get underway immediately on the 60 modular bed unit, which will help alleviate the pressure on the Emergency Department in the hospital.
A total of €2 million has also been made available to support the project.
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Announcing the progress, Fine Gael Senator Kieran O'Donnell said: "While it is happening slightly later than I would have liked, this is excellent news for staff and patients at the hospital, and the people of Limerick and surrounding areas.
"I have worked tirelessly to ensure this project got underway, raising my concerns with my Fine Gael colleagues the Minister for Health, the Minister for Public Expenditure and Reform and the Taoiseach himself, stating that we had to get this project underway and that means had to be found to ensure works begin soon."
Work will begin on site in mid-March following the publication of a commencement notice.
(CM/JG)
