The Taoiseach is to propose the removal of the Fianna Fáil party whip from Ms Beverly Cooper-Flynn following the failure of her appeal against the outcome of her failed 2001 libel action against RTÉ this morning.
Senior party figures went into session this evening to study the unanimous decision of the Supreme Court's five judges to reject her bid to overturn the outcome of her libel action against RTE.
The party released a statement this evening in which it was stated that the Taoiseach would move next Tuesday to remove the whip from Ms Cooper-Flynn at a Parliamentary Party meeting.
It is understood the party's National Executive would then meet to discuss the expulsion of Ms Cooper-Flynn from the party.
Ms Cooper-Flynn was expelled from the parliamentary party soon after losing the original High Court action in 2001, but returned some months later to contest the following year's general election as a Fianna Fáil candidate.
Speaking after the judgment this morning, the Mayo Fianna Fail TD said she was "very disappointed but had to accept the decision of the courts". She also said she had not yet made a decision on her political future.
"Im very very disappointed with the decision, but I have to accept the decision of the court, so I just have to deal with it," she told reporters outside the court.
Asked about the legal bills she faced she said: "I suppose I'll cross every bridge as I come to it, that's the reality of the situation. I do have to deal with that [the legal bill].
"It' not a good day financially, definately not."
RTÉ's Charlie Bird said he bore no anymosity to Ms Cooper-Flynn "or anybody else who has to go through the pain of a 29-day libel hearing in the High Court, and afterwards a Supreme Court appeal."
"For everybody involved in this case it is difficult. Clearly it is a difficult day for her but it is a great day for RTE. It is a great day for investigative reporting, a great day for journalism, and a great day for public service broadcasting," he added.
The judgment signalled renewed opposition demands for Ms Cooper-Flynn's expulsion from the Fianna Fáil parliamentary party.
In the libel action, the High Court found that as a financial adviser with National Irish Bank, she had advised or encouraged people to evade tax.
After a 28-day hearing, a jury decided her reputation had suffered no material injury as a result of RTÉ broadcasts of June and July 1998 implicating her in encouraging people to evade tax by investing money in certain offshore schemes.
Ms Cooper-Flynn resigned from the parliamentary party immediately after the High Court judgment. However she was readmitted in time to be a Fianna Fáil candidate in the 2002 general election.
The two-day appeal to the Supreme Court appeal was heard in February and judgment was reserved.
Ms Cooper-Flynn already faces costs of an estimated €2 million from her High Court action. She is now also expected to be liable for costs arising from the two-day Supreme Court appeal.
Fianna Fáil said it was studying the outcome of the judgment, while Fine Gael has demanded "immediate action" from the Taoiseach, Mr Ahern.