Roscommon and Leitrim county councils are supporting the development of a building for third-level courses in Carrick-on-Shannon.
The two local authorities have agreed to facilitate the development of the off-campus premises for Atlantic Technological University in Sligo
The commitment is included in the draft Carrick joint local area plan for 2025 to 2031.
The Green Party's Leslie O'Hora, who lives in the town, is welcoming the news.
The councils are also promising to support the development of a much-needed community centre, or town hall, in the town.