Taoiseach Brian Cowen said AIB may need more State support to meet new capital targets.
AIB has until the end of the year to raise €7.4 billion to reach new capital levels set by the financial regulator.
The bank "may need some help, but we will provide that," Mr Cowen said in an interview in New York today.
"They have to sell some of their assets that are non-core."
AIB is disposing of stakes in M&T Bank in the US and Bank Zachodni WBK SA in Poland as part of its plan to raise the capital.
UniCredit SpA and HSBC Holdings have withdrawn from the bidding for the Polish lender, a person with knowledge of the negotiations said today.
Catherine Burke, a spokeswoman for AIB, declined to comment. The State holds an 18 per cent stake in AIB after injecting €3.5 billion into the bank last year as bad debts rose.
The Government has said it's ready to provide more aid if needed as the economy emerges from the recession in the first quarter.
AIB fell 2.2 per cent to 91 cents in Dublin today giving it a market value of €982 million.
Bloomberg