The prospect of a prestigious American college creating a new campus in Ireland took a has taken a major step forward.

At a press conference on Monday at Mercyhurst College in Erie, Pennsylvania, the signing of an memorandum of understanding with Waterford County Council officials was announced. The memo authorises a feasibility study for a new campus in Dungarvan.

The study, shared between Mercyhurst and Waterford County Council, was signed simultaneously through electronic conferencing.

The initiative is the brainchild of Fine Gael TD John Deasy, a graduate of Mercyhurst, and follows years of twinning initiatives between Mercyhurst and Dungarvan, including the hosting of the college's global intelligence forum every two years in the Co Waterford town.

"This is the first step towards what will hopefully be the construction of a dedicated campus in Dungarvan," Mr Deasy said. He travelled to Erie, Pennsylvania, earlier this year to meet the university's new president, Michael Victor.

“The aspiration has always been to make Dungarvan a university town. It’s taken eight years to get to this point and it’s fantastic to see the initial groundwork has been completed.

“When I went to Erie last March I could sense a new impetus had emerged within Mercyhurst and now we are beginning to see the manifestation of that, which I hope will change the face of the town of Dungarvan for the next 10 years.”

Since that visit to the States, Mr Victor and the university's provost, David Dausey, have been to Dungarvan to meet Mr Deasy, Waterford County Council officials and Mercyhurst's Irish board.