The Government has announced that the television licence fee is to be increased by €2 to €160.
The increase will come into effect from January 1 st, 2008.
Minister for Communications Eamon Ryan said the measure will increase license revenues to RTÉ by around €2.8 million each year.
He said the increase was agreed by Government following an independent review by Indecon consultants of RTÉ's performance in 2006.
"In addition to the licence fee, my Department will be reinvigorating the current annual review process," Mr Ryan said.
"There will be increased focus on value for money, cost management and more precise performance indicators. I am confident that RTÉ will provide the Irish viewer with good reason for this increase."
The chair of the RTÉ Authority, Mary Finan, welcomed the decision tonight.
"RTÉ looks forward to working with the Minister and his Department in reinvigorating the current annual review process," she said. "I share the Minister's confidence that RTÉ will continue to provide the audience with value for money."