Dublin Airport has announced plans for a 3,110m runway to be built 1.6km north of the existing main runway.
The airport is investing around $370m in the scheme.
Planning permission for the project was granted in August 2007 but was put on hold owing to the economic downturn and a fall in passenger numbers.
Since then passengers have been rising and a statement from the airport said: "The continuation of growth at Dublin Airport is dependent on having sufficient capacity available to satisfy future demand."
Kevin Toland, Dublin Airport Authority chief executive, said: "Last year was the busiest year ever in the airport’s history with a record 25 million passengers travelling.
"Passenger numbers continue to grow strongly in 2016 with double-digit growth recorded in the first two months of this year.
"We are progressing our plans to deliver the new runway in accordance with the development and pathway for growth outlined in the government’s National Aviation Policy."
The rapid recovery in passenger numbers is due to a combination of almost 50 new routes and services, additional capacity on existing routes and the addition of nine airlines to those using the airport. Â
Total long-haul connectivity has grown by more than 65% since the airport second terminal opened and short-haul connectivity has increased 16%.
The north runway development has the potential to open up connectivity to a range of long-haul destinations, particularly in fast growing economies in Asia, Africa and South America.
The delivery of a new runway could support a further 31,000 jobs over the next two decades, contributing $2.5bn to Ireland’s GDP.
Enabling works are due to commence later this year, with construction of the north runway scheduled to start in 2017. Â
The runway is expected to be completed in 2020.
Image via Dublin Airport