The Taoiseach is to honour Tony Blair's "unique contribution to the improvement of British-Irish relations" by funding a Chair of Irish Studies at the University of Liverpool.
The announcement came on the on the eve of Mr Blair's retirement from office and will provide a £5 million endowment to create the Chair in perpetuity.
University of Liverpool was been awarded the Blair Chair in recognition of its research and promotion of Irish affairs in its Institute of Irish Studies.
Founded in 1988 the institute played a key role in developing and informing peace programmes in Northern Ireland.
Mr Ahern said the Chair in Mr Blair's honour "is a fitting way to mark his immense and historic contribution in helping bring peace to Ireland".
The Taoiseach added: "It is a contribution that will be remembered by Irish people all over the world for as long as the history of our country is read and written."
