Mr Woodward said the hospital had spare radiotherapy capacity
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Cancer patients from County Donegal who need radiotherapy are to be given their treatment in Belfast.
Health minister Shaun Woodward said spare capacity at the new cancer centre at the City Hospital will be used.
Mr Woodward said the arrangement would not have any impact on radiotherapy services to people in Northern Ireland.
"We are saying that if we have spare physical capacity and (the Irish government) are prepared to pay, it only makes common sense," he said.
Mr Woodward said it "won't in any shape or form jeopardise our patients in Northern Ireland".
He said the costs of staffing would also be covered by the Irish government.
On Wednesday, Donegal Action for Cancer Care spokesperson Noelle Duddy said that for palliative care patients in the county, Belfast was just too far and patients would have to stay in the city while they were receiving treatment.
"Belfast is at least 100 to 150 miles away for many Donegal patients and the reason they can't travel to Dublin and Galway for treatment remains the same for Belfast," she said.
She said that a satellite radiation unit for the north-west based in Letterkenny was what they wanted.