The United States and the Republic are to develop joint plans to tackle poor literacy levels, improve classroom teaching and encourage exchanges between the countries by principals and students.
A memorandum of understanding on the proposal was signed yesterday by the US Secretary of Education, Mr Richard Riley, and the Minister for Education, Dr Woods.
One initiative planned is to use television for "literacy tuition". According to the Department of Education, this is based on experience in the US where popular media are used to improve literacy.
A programme called the Young Leaders scheme will be promoted by the administrations under the understanding. This will involve Irish students from third-level colleges going to the US for summer internships in public bodies and non-governmental organisations.
The administrations are also hoping to set up an exchange programme for second-level principals to run between 2000 and 2002.
In relation to pupils with special needs, the governments said they would co-operate and share information in the area, particularly in relation to dyslexia and autism.
They will also develop joint research on new technologies to assist such pupils and help them make the transition from school to work.
Mr Riley has asked Dr Woods to nominate representatives from the higher education and institute of technology sector to attend a major conference in Washington in September.
This will address the implications of new technology for the delivery of higher education.
The Republic is only the second EU member-state to sign an education memorandum of understanding with the US.
The costs of this have not been disclosed yet but yesterday both governments said "each executive agency shall bear the costs of its participation".