Minister for Education Norma Foley has announced that initial project approval has been given for a St Francis' Special School, Beaufort.
The school for children with additional needs will get five new classrooms, a sensory room, a music room, a cookery room and a withdrawal room.
St Francis' Special School will also be retrofitted and upgraded to a Building Energy Rating of B with renewable heating.
Fianna Fáil TD Michael Cahill has welcomed the news which is part of a national increased investment in special education, including the approval of 16 new special schools and the doubling of special classes.
Independent Kerry TD Danny Healy Rae also welcomed the initial project approval for the development.