Highland Radio News can reveal that a contract has been signed for the development of a Direct Provision Centre in Letterkenny.
350 people, mostly made up of families, will locate in the town around February.
They will be housed in former student accommodation on the Port Road made up of 60, two and three bedroom apartments.
It's understood supports are being put in place to assist the new residents with details to be confirmed.
Highland Radio News has contacted the Minister for Children, Equality, Disability, Integration and Youth Roderic O'Gorman for comment.