An Taoiseach Micheál Martin visited the proposed site for the bridge which will link the Mourne Mountains and the Cooley Peninsula, where he launched the tender process.
Approximately €3 million from the Shared Island Fund has enabled Louth County Council, working with Newry, Mourne and Down District Council to bring the project to tender stage.
Speaking during his visit, Taoiseach Micheál Martin TD said: "I am delighted that the Narrow Water Bridge is now proceeding to tender stage. This is an important and symbolic project for the North-East, directly connecting the Cooley Peninsula to coastal Co. Down, and a project with strong support from communities on both sides of the border.
"The project also brings significant tourism and economic benefits to the region. Along with improving North-South connectivity, the bridge will be at the heart of a range of cross-border greenways, active travel, recreation and outdoor activity amenities planned for the Carlingford Lough area.
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"Today's announcement is an important next step in the delivery of this long-awaited project and another example of the Shared Island Fund in action."
Minister for Housing, Local Government and Heritage Darragh O'Brien TD added: "I would like to pay tribute to Louth County Council and Newry, Mourne and Down District Council for their determination and dedication to this project. It is through their cooperation and local expertise that we are able to bring the Narrow Water Bridge to tender.
"This is a huge day for communities in Cooley, Warrenpoint and Newry. Narrow Water Bridge has been talked about for decades, and is now finally becoming a reality, thanks to the work of local community groups, the two Councils and the Shared Island Fund."
Sinn Féin MLA Sinéad Ennis has welcomed the progress on the Narrow Water Bridge project, urging the government to take action on other key projects outlined in New Decade, New Approach.
Sinéad Ennis said: "This is a transformational project and key to unlocking South Down's huge potential to create good quality jobs, boost tourism and create a stronger, all-Ireland economy.
"While Irish government support for this project is welcome, they must also live up to progressing other key projects outlined in New Decade, New Approach to deliver much-needed investment into local infrastructure.
"Sinn Féin will continue to ensure Narrow Water bridge is delivered to improve the lives of workers, families and local businesses across South Down."
