A new school for Holy Angels Day Care Centre at Kelvin Grove has been "listed for capital funding", the HSE have confirmed.
Holy Angels has been on the priority list for a new school building for a number of years.
In a letter to Carlow TD, Pat Deering, which has been seen by Carlow Live, the HSE say that "there have been a number of challenges securing an adequate site for a new school building".
They said: "The HSE has been requested to reply directly to you in the context of the above Parliamentary Questions, which was submitted to the Minister for Health for response.
"The HSE provides funding to the Holy Angels day Centre Carlow under Section 39 of the Health Act 2004. In 2019 funding provision to the Service is €579,472.
"Holy Angels has been on the priority list for a new school building for a number of years. There have been a number of challenges securing an adequate site for a new school building.
"With an aim of providing assistance to the service, South East Community Healthcare (SECH) has designated an area at a site at Kelvin Grove Carlow for the Holy Angels to operate the new school.
"The project proposal has been submitted to the HSE Capital Steering Committee. It is understood that it has been accepted by them and is currently listed and queued for capital funding."