Borders said that the store - which will officially open on October 27 - will be 'the first of many' that the US-based retailer hopes to open in 'the next few years'.
The move follows the news in August that Borders' international division - of which the UK generates 60 per cent of sales - posted a loss of£7.5 million on sales of£452.7 million, with like-for-like sales down 3.4 per cent for the quarter ending July 29.
A spokeswoman said it was 'certainly the case' that Borders hoped to 'carry on expanding and that this strategy will return the business to profitability as soon as possible'.
She added that although there were, as yet, no firm plans for further store openings in Ireland, Borders was looking at 'a number of sites - this will be the first of many'.
The company's first Irish store will be in west Dublin in Blanchardstown and will carry more than 100,000 books, music and films. It will also include a Starbucks café.