Loreto principal Billy O'Shea said this 'is by and far the most positive news since January' when work stopped on the almost-completed new building following the collapse of Carillion Construction Ltd and the subsequent examinership and liquidation of sub-contractor Sammon.
'I think that after the announcement of the last few days, we would be more confident than at any other stage of the process so far', he said.
The new Loreto secondary school is largely completed apart from the laying of a GAA pitch and the erection of goalposts along with a few finishing touches inside.
'We would be very confident that we will be up and running by the end of August', said Mr O'Shea.
A 25-year contract for the maintenance of the school under a Public Private Partnership Project has yet to be awarded.
The principal said the school is still waiting for news on the service contract and it will either be awarded before the school opens or an interim arrangement will be put in place.
Mr O'Shea said he was 'very relieved' by Minister Bruton's announcement. 'It is good news for everyone associated with the school', he said.