The aim of this paper is to investigate the amenability modulo an ideal of Banach algebras with emphasis on applications to homological algebras. In doing so, we show that amenability modulo an ideal of A^** implies amenability modulo an ideal of A. Finally, for a large class of semigroups, we prove that l¹(S)^** is amenable modulo Iσ^** if and only if an appropriate group homomorphic image of S is finite where Iσ is the closed ideal induced by the least group congruence σ.