A blueprint to prevent the closure of hundreds of rural post offices is to be published by the Government in the autumn.
The plan is likely to include a proposal that post offices take on more banking services to ensure their viability.
There are more than 1,800 post offices, but the future of hundreds are under threat. Some 900 conduct only 4 per cent of all post office business.
Civil servants are drawing up a paper on policy and funding of post office networks in other EU Member states, including Britain, for presentation to the Minister for Public Enterprise, Ms O'Rourke.
In addition, industrial relations consultant, Mr Phil Flynn, is finalising his report on the future sustainable development of the post office network which will be presented to An Post Management and Minister O'Rourke in weeks.
It is understood the Minister is looking at a proposal in Britain for the establishment of a universal bank run by the post office. From 2003 direct payment of British benefits will be made to virtual bank accounts accessible in rural areas through the post office.
An Post met officials from the Minister's Department last week to discuss Government policy on retention of the post office network. Is understood the Minister will be in a position to bring forward a plan for the retention of the post office network to cabinet in October.
As part of the process of drawing up policy, the cabinet informally gave approval to An Post in July to enter into talks with the banks to see how some of the services they want moved to more central locations could be transferred to post offices.
The negotiations are underway and discussions have centred on the possible development of an account aimed at the 30 per cent of the population which does not hold bank accounts.
In a highly controversial move, An Post last year proposed the "voluntary downgrading" of several hundred rural post offices to stem growing losses in its post offices division.
The proposal was for existing sub-post offices to become "postal agencies" opening for limited hours and offering a limited range of services. The proposal was met with anger from politicians and rural communities.
At the time the Government made it clear it did not want any more rural post offices closed. Local politicians are determined to protect any in their constituencies that are considered vulnerable.
It has also been learned that the draft heads of the Postal (Miscellaneous Provisions) Bill to allow for a possible strategic alliance for An Post has been circulated to Government Departments in the last few weeks. Minister O'Rourke will bring the heads of bill to Government for approval early next month.