Scoil Eoghain in Moville is set get an extension which will include one new mainstream classroom and a special education teaching room.
Donegal Minister Charlie McConalogue welcomed the announcement, noting the importance it will have on the town.
A letter of intent has been issued to the successful contractor to indicate they are going to be awarded the contract for the project.
We understand there is a minimum 14-day standstill period before a letter of acceptance can be issued by the Department of Education.
