The long-running dispute over the remuneration package of the EirGrid chief executive designate, Mr Kieran O'Brien, is approaching a resolution.

It is understood Mr O'Brien will this weekend study a detailed remuneration package offered by the Department of Communications, Marine and Natural Resources.

He has been negotiating with a senior official in the Department, Mr Martin Brennan, for several months about pay and pension issues, and agreement is believed to be close.

However, a spokesman for EirGrid declined to comment last night.

Other managers and general staff at the ESB, who are also due to transfer to EirGrid, have been monitoring the talks closely and if Mr O'Brien concludes an agreement then talks can begin with them.

The salary offered to Mr O'Brien has not been disclosed although some estimates have put it at between €130,000 and €150,000.

A recent statutory instrument from the Government speeded up the negotiation because it gave more say in the matter to the Department of Communications, Marine and Natural Resources over the Department of Finance.

EirGrid was meant to be set up as a fully independent body outside the ESB as far back as June 2001.

However, because of the negotiations over Mr O'Brien's conditions and a court case involving EirGrid and the Commission for Energy Regulation, the move has not yet taken place. At present, EirGrid operates at arm's length from the ESB and has its own board of directors.

It is charged with operating the national grid, but this asset remains within the ownership of the ESB.

When all agreements are finalised, about 200 ESB staff and management could transfer to EirGrid.

However, the talks with general staff could drag on for some time because they will involve complex pension and other issues.

Also ESB staff have shares in the company and, if they transfer to EirGrid, these would have to be bought out.

In the process, a price would have be put on the ESB and valuations drawn up by the Government and the staff are unlikely to be the same.