The Department of Education has allocated €15-million to replace prefabs in Irish schools with permanent accommodation.

46 schools - with 115 prefab units - will be offered grants to provide the new facilities.

Education Minister Ruairí Quinn says the scheme could create as many as 360 jobs - 300 of them direct jobs.

Over 2,600 students will benefit from the accommodation programme this year and next.

Minister Quinn made the announcement on Friday, the scheme follows on from last year's replacement of over 458 prefab units.

Ruairí Quinn said "Replacing prefabs offers better accommodation for students and savings for schools and the Exchequer, as well as providing construction jobs. So I am delighted that we are building on our Programme for Government commitment to reduce reliance on rented prefabs in schools and extending the benefits to other parts of the country."

Last year's initiative will bring savings of almost €5 million per annum on prefab rental - a further saving of €2 million is expected from the latest round of works.

Replacing prefabs is part of the Government's €475 million education infrastructure plan for 2014. This Plan will provide modern, high quality accommodation for pupils and teachers and construction related jobs for workers around the country.