The Cork Life Centre is to receive €100,000 in funding from the Department of Education, as well as the €77,500 in annual funds issued by the department.
The Cork school has been educating students who find themselves outside of mainstream schooling for the past 20 years.
Last year, the school applied for formal recognition and funding for its work.
In December, Don O'Leary, the centre's director, said: “The demand for our service is greater than we can provide and State agencies all over Cork refer students to us consistently.”
The school in Sunday's Well, which has been in operation for the past 20 years, has just under 60 students attending classes this year.
Fianna Fáil's Pádraig O'Sullivan said he is delighted that the extra funding has been confirmed.
The Cork North Central TD said: "This is hugely welcome news. I want to commend Don O'Leary for all his hard work and campaigning on this issue."
The Department is also commencing a process which will facilitate the provision of additional teaching hours to the Cork Life Centre (equivalent to 12 posts). This is hugely welcome news. I want to commend Don O Leary for all his hard work and campaigning on this issue.— Pádraig O'Sullivan TD (@padraigosull) May 6, 2021
Mr O'Sullivan also confirmed that the department is in the process of facilitating extra teaching hours at the Cork Life Centre.
He added: "The Cork Life Centre is a vital lifeline for many students for whom mainstream education does not work.
"I am delighted with this news today and well done to all involved."