A method and an arrangement for recovering heat from flue gas of a boiler (10). The method comprises passing the flue gas (G) of the boiler though a flue gas cooling unit (1), cooling the flue gas (G) by transferring heat from the flue gas (G) into a circulation (3) of a flue gas cooling liquid (CL), transferring heat energy of said flue gas cooling liquid (CL) into a heat pump (2), and arranging the heat pump (2) for receiving heat energy also from a circulation arrangement (8) of a district cooling system. The heat pump (2) is coupled to a circulation arrangement (6) of a district heating system, wherein the method further comprises transferring in the heat pump (2) heat energy (H) received from said cooling liquid (CL) and from said circulation arrangement (8) of district cooling system into said circulation arrangement (6) of district heating system, for lowering the temperature of said flue gas cooling liquid (CL) and cooling fluid of said district cooling system, and raising the temperature of heating fluid of said district heating system.