Almost 200,000 pupils in Northern Ireland will be able to drink around 1,000,000 litres of subsidised milk for the next two years.
The School Milk Scheme will run until 2024, the region's Agriculture Minister Gordon Lyons has confirmed.
The scheme aims to help ensure pupils have a healthy and balanced diet by including fresh milk on the school menu.
Subsidies are provided to schools so that milk and milk products can be provided to school children at a reduced cost.
Parents make a contribution towards the cost, which varies between each Education Authority region.
Around £1 million is being made available for the demand-led initiative, Mr Lyons said.
He added that the scheme had proven 'extremely popular' with schools, parents and pupils.
“I am pleased to clarify that the funding is in place to allow the School Milk Scheme to operate until at least the end of 2023/2024," he said.
"Any primary or special (primary) school can take part in the scheme and the support ensures that milk can be provided at a reduced cost.”