The Government is understood to be prepared to look favourably on RTÉ's application for a licence-fee increase of €43 a year.
The RTÉ Authority announced last night it had formally applied for the rise, which would bring the cost of an annual licence to €150.
RTÉ wants the increase to be index-linked and has also asked the Government to agree to the introduction of a separate commercial licence fee for businesses, which benefit from having a TV on their premises.
As part of its application, RTÉ has outlined a comprehensive range of reporting mechanisms to be initiated during 2003 to fulfil its commitment to transparency and accountability.
A Government source said last night that the Minister for Communications, Marine and Natural Resources, Mr Ahern, was likely to grant most or all of the licence increase given the commitment to transparency which RTÉ has given.
The €43 increase is in line with the recommendations of the Forum on Broadcasting published in early October.
Mr Ahern is expected to bring specific proposals on the forum to Cabinet in the next few weeks. He will bring the RTÉ licence application to cabinet at the same time.
RTÉ has worked with consultants KPMG in relation to its licence request.
Senior RTÉ management figures have had regular meetings with Department of Communications officials since July. They have worked closely drawing up new management structures and financial and budgetary controls at the national broadcaster.
RTÉ had predicted a €20 million overspend for this year. This is now expected to run to €20.3 million, and the authority is facing the prospect of borrowing to fund day-to-day operational costs from early next year.
In a statement last night RTÉ said it had the lowest level of public funding among comparable European broadcasters. This made it "inappropriately dependent on commercial revenue", it said.
"Due to this imbalance RTÉ's ability to meet its public service obligations is under constant threat, and the audience is not always well served," the statement added.
"The sum sought is essential to ensure that RTÉ can provide the minimum level of programme service, which the Irish audience is entitled to expect from its national broadcaster."
RTÉ recently advertised senior positions including financial managers and an internal auditor. It is setting up new business units.
The authority will appear before the Oireachtas Communications Committee, chaired by the Cork North Central TD, Mr Noel O'Flynn, on November 27th, when it will set out its strategy for the future.
A licence fee currently costs €107 annually. The former communications minister, Ms Síle de Valera, last year turned down a request from RTÉ for a fee increase of €63 a year.