DUBLIN- Irish Prime Minister Brian Cowen on Sunday night confirmed the European Union (EU) has agreed to the Irish government's request for a financial aid package from the EU and the International Monetary Fund (IMF).

Irish Taoiseach Brian Cowen speaks to the media in Government Buildings in Dublin November 21, 2010. Ireland requested an international bailout on Sunday to tackle its banking and budget crisis, the euro zone's second bailout this year as Brussels moves to protect Europe's wider financial stability. [Photo/Agencies]

Speaking at a press conference in Government Buildings in Dublin, Cowen said the rescue package, which will run for three years, will be tied to a banks restructuring and deficit reduction plan.

He said: "A formal process of negotiation will now commence that will lead to the provision of assistance, on the basis of a program to be negotiated by the government with the European Commission and the International Monetary Fund, in liaison with the European Central Bank."

"A central element of the program will also be to support further deep restructuring and the restoration of the long-term viability and financial health of the Irish banking system," Cowen said.

Cowen also said Ireland's 12.5-percent corporation tax rate was not a part of the negotiations.

The amount of funding will be decided during the negotiations. This is likely to involve the provision of tens of billions of euros from Europe to help Ireland, at interest rates that are more affordable than those currently available on international markets.

The loan will be arranged through the IMF and the European Financial Stability Facility, a fund of 440 million euros that can be accessed by EU member states in financial difficulty.

Irish Finance Minister Brian Lenihan said Britain and Sweden have also offered to help fund the package.

The prime minister said the Irish government will publish its four-year recovery plan for the economy early next week.

The Irish government held a cabinet meeting on Sunday afternoon to sign off on the details of the four-year strategy to deal with the debt crisis.

The plan is designed to bring Ireland's budget deficit back to within 3 percent of GDP by 2014.