The redevelopment of the Post Office on Eglinton Street will include a permanent a civic arts space.
The site was used as a temporary creative space during the Galway International Arts Festival in 2019.
Commenting on the news, Galway International Arts Festival said that they have a long history of temporarily transforming old buildings to facilitate the arts.
“This news this morning is something we have wanted for Galway for a long time. We are very grateful to An Post and Minster Naughton for making it a reality now,” the Festival said in a statement.
Galway West TD and Junior Minister Hildegarde Naughton also said that she is delighted with the announcement.
“Galway will now have a permanent arts space, something that has been lacking for many years,” she said.
“This is a really good news story for Galway and the arts.”