The possibility of a third terminal at Dublin airport has been discussed by Fianna Fail and the PDs in recent days, according to today's Irish Times.
It is hoped the move will help resolve Government divisions over aviation policy. It has been agreed for some time that a second terminal is needed, and the notion of a third terminal has been floated to satisfy the PDs concerns that there should be competition between terminal operators.
Planning for the third terminal would only begin once the second terminal was up and running, and would only get the go-ahead if passenger numbers rose towards 30 million.
It is also understood the Attorney General has been consulted over proposals favoured by the Tanaiste, Mary Harney, to exclude the Dublin Airport Authority (DAA) from a tender process to select the operator of a second terminal.
An aviation package was expected to be brought to Cabinet next Tuesday, despite significant differences remaining between the Coalition partners.
Proposals are said to be "largely ready", but the political differences may scupper the chances of a deal on Tuesday.