The Minister for Further and Higher Education, Research, Innovation and Science, Simon Harris TD made the announcement.
The funding will enable the centre to provide additional accommodation that will support the provision of services for the Post Leaving Certificate (PLC) programme in the area.
The Stranorlar FET Centre is one of six locations benefiting from part of the next tranche of capital investment under the Further Education and Training (FET) Strategic Infrastructure Upgrade Fund.
Funding for this project will be provided through SOLAS to Donegal ETB.
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The project will now move forward to the appointment of a design team with the potential of developing a more detailed project brief alongside relevant stakeholders.
Minister Harris said: "I am so pleased to announce that your proposal has been successful under the Strategic Infrastructure Upgrade Fund programme call for the addition of facilities to your Further Education and Training Centre here in Stranorlar.
"This will allow the college to extend their offering to students, facilitate the building of ICT capacity amongst your learners as well as enhance the learner experience for students and staff at the Stranorlar Further Education and Training Centre."
Chief Executive of SOLAS, Andrew Brownlee, said the announcement "marks a significant development for learners and communities in Donegal, with the capital investment in Finn Valley College enhancing the facilities and experience for its learners".
Anne McHugh, Chief Executive of Donegal ETB, stated: "We wish to thank the Minister for this much-needed investment in our FET Centre in Stranorlar. We also want to express our gratitude to the Minister for his continued commitment to Further Education and Training.
"This investment allows Donegal ETB to further consolidate provision in the Finn Valley area and is another step towards meeting key Future FET Strategy targets."
