The Government has announced a €2.1million investment to develop a new community facility housing a public library, a family resource centre and An Foróige in Donegal Town.
Almost half of the funding has been awarded by Michael Ring, Minister for Rural and Community Development, and the remainder will be provided by Donegal County Council.
The multi-purpose community facility will include a new public library running to 630 square metres.
It is expected to attract an additional 70-80,000 visits a year as more local people, visitors and tourists make use of the new facility.
The project is due to be complete by 2020.
In a statement, Donegal TD Joe McHugh said that this new facility will become a community hub and help as a place for people to develop skills and interests.