The Education Minister Ruairi Quinn has admitted he made a mistake in making cuts to DEIS schools.
Some 235 teaching posts which were due to be axed from schools in disadvantaged areas are now being retained.
The decision was signed off on at today's Cabinet meeting.
Education Minister Ruairí Quinn said the money to pay for the teaching posts will now have to be found within existing budgets, but he admitted he got it wrong in implementing the cuts.
"I made a mistake. I got it wrong," he said.
"When the full impact of what we did was brought to my attention, I realised...we had not analysed in full the information that was available to us.
"The schools felt they were being adversely affected over a number of years. I think I've now corrected that."