A government appointed panel is believed to support developing an independently-owned terminal at Dublin Airport.

The report by the panel, which was chaired by a former head of the Department of Finance, Mr Paddy Mularkey, was delivered on Monday to the Minister for Transport, Mr Brennan.

However the Minister is unlikely to bring proposals to the Government for some weeks.

Early indications are that it reaches a "favourable" conclusion about seeking tenders for a new terminal at the airport, which is owned by the State group Aer Rianta.

This is despite the advice of consultants to Mr Brennan's predecessor, Ms Mary O'Rourke, who said the international precedents for such terminals were not good. One report by the London-based academic, Professor Rigas Doganis, said such a terminal would make "no commercial sense".

It also runs contrary to the stance adopted by Aer Rianta.

Mr Mularkey's panel was asked to assess 13 expressions of interest received by the Government last autumn.

He was assisted by Sir Gilbert Thompson, who developed Manchester Airport, and Mr Paul Gaines, a US expert on airports and aviation issues.

Their report is said to run to about 100 pages.

Any findings in relation to the individual proposals submitted to the Government will be closely watched.

These groups include Ryanair, which has campaigned vigorously for an independent terminal in Dublin Airport, and the businessman Mr Ulick McEvaddy, who with his brother Des owns land adjoining the airport.

Another involves the German group Hochtief, which is Aer Rianta's joint venture in a number of foreign airport projects.

The response of Aer Rianta will be crucial. The company has made no public comment, but privately indicated that it regards such plans as folly.

Correspondence released under the Freedom of Information Act between the Aer Rianta chairman, Mr Noel Hanlon, and Mr Brennan, reveals tension over the matter. In a letter to the Minister last July, Mr Hanlon claimed "Aer Rianta does not have a problem with the concept of an independent terminal" and said it was "entirely a matter for the Government".

But he added: "An independent terminal does not operate at any airport in Europe. The only airport where we can find it was operational was Toronto Airport.

"Whilst it was built it was never effective and finally the government had to buy it back from the promoters. It received a tremendous amount of adverse publicity at the time and nearly brought down the government. I am enclosing for your information some of the cartoons which appeared in the newspapers in Canada at that time regarding it."