The Northern Ireland Planned Healthcare Scheme will continue into 2022.
The scheme enables border communities to receive medical care and treatment in Northern Ireland.
The temporary scheme was set up for an initial 12 month period following the end of the EU Cross Border Healthcare Directive.
It entitles Irish patients waiting for surgery procedures in the Republic to obtain treatment, in either a public or private setting, within Northern Ireland and to have the costs reimbursed.
It was due to end on December 31st but will continue until legislation is passed for a new scheme.
Local Senator Robbie Gallagher told Northern Sound that the announcement will provide "much needed certainty" to people along the border: