As Ireland becomes the first country to exit the eurozone bailout programme, one of its writers can look forward to a period of prosperity with the creation of a laureateship award worth €150,000 (£126,500) over three years.

Ireland's Arts Council has teamed up with University College Dublin and New York University to select an outstanding Irish writer of fiction who will promote its literature around the world and inspire the public to engage with the best Irish fiction.

According to the chairman of the Arts Council, Pat Moylan, the new position will be appointed in 2014 and represents a "milestone for Irish literature and will place Irish writing at the forefront of global public thought".

"The laureate will be a terrific honour for a literary fiction writer, and his or her work will benefit all emerging writers," Moylan said in an Arts Council statement. "The laureate will have an impact on the wider public through major events, a blog and promotions each year, all with the purpose of getting people reading high-quality literary fiction."

According to the statement, the nominations process is due to begin immediately and will be carried out in consultation with "key members of the literary community as well as a spread of national organisations". The laureate will be chosen by a panel of judges, which is set to include "high-profile" writers from Ireland and from the US, along with representatives from the Arts Council, the participating universities and the Irish Times.

The winning author will be expected to teach creative writing to students at both University College Dublin and New York University, to take part in live events and, of course, to "spend time developing his or her own work".

Financially, the award compares favourably with more traditional laureateships given to poets around the world. The US poet laureate consultant in poetry – currently Natasha Trethewey – receives a $35,000 (£21,000) stipend, while the British poet laureate – currently Carol Ann Duffy – traditionally receives a butt of sack (630 bottles of sherry), along with an annual salary of £5,750.

Literary expertise of the highest level will be required by a judging panel charged with making a choice from among the many stars of Irish fiction, a constellation that ranges from established authors such as Anne Enright and Sebastian Barry to a younger generation of writers, including Kevin Barry and Keith Ridgway.