Minister for Foreign Affairs Dermot Ahern has said the Government will recognise Kosovo to help bring stability to the Balkans.
"We are faced with a decision to recognise Kosovo. My intention is to do so," he said. "Serbia effectively lost Kosovo through its own actions in the 1990s.
"The bitter legacy of the killings of thousands of civilians in Kosovo and the ethnic cleansing of many more has effectively ruled out any restoration of Serbian dominion in Kosovo."
EU ministers are set to meet in Brussels tomorrow to try and agree a position.
Most of the 27 EU countries are likely to recognize Kosovo rapidly but at least six - Cyprus, Greece, Slovakia, Spain, Bulgaria and Romania - have indicated they will not do so immediately.
Mr Ahern said the status quo could not continue in Kosovo and said he would recommend to ministers that Ireland formally recognise the new country.
"We need to move on and deliver on a permanent settlement. I don't think we can continue leaving matters as they are," he told RTÉ Radio.
Fine Gael's foreign affairs spokesman Billy Timmins and
Labour's European affairs spokesman Joe Costello also welcomed Kosovo's declaration.
However, Mr Costello said clarification was needed on the "precise status" of the nearly 300 Irish troops stationed in Kosovo as part of a 16-000 strong Nato force.
"While there was a UN agreement on the establishment of the peacekeeping force of which Ireland forms a major part, there is now no UN agreement on Kosovo's independence," he said. "There must be a UN mandate before Ireland can participate in any military mission abroad."