A £2.2m new respite home for disabled children will be developed in Omagh and Fermanagh.
The new facility will offer short breaks for children aged up to 18.
It will replace the service for children at Beltane House in Omagh, which will continue to help adults.
Health Minister Michael McGimpsey said the investment will see the development of a state of the art facility with eight residential places.
"I am committed to providing innovative and integrative support services for children with disabilities and their families," he said.
"Residential respite, particularly for children with complex needs, is an extremely important component in delivering these services."
The Western Health Trust will move on the design and building of the centre at the former Omagh general hospital site.
Western Trust Assistant Director of Children's Mental Health and Disability, Mr Kieran Downey said the investment represented real tangible progress.
"I am delighted to share the news with parents and carers of the children who will avail of the improved services", he said.
"The child-friendly facility will host a dedicated staff team allowing parents and carers to have a much need break from their ongoing caring responsibility."
Alliance MLA Kieran McCarthy said respite services were a vital resource for children and families and provided essential support for carers.
"This news will provide a significant boost for the Fermanagh and Tyrone area which has in recent times suffered serious cuts in vital frontline services," he said.
The new facility is hoped to be ready by December 2010.
© UTV News