The Government has ruled out State funding to build the proposed National Stadium and is to seek private funding for the project. The Government is also to ask the GAA for permission to use Croke Park on a `one-off¿ basis for the European Championships in 2008.
The Department of Finance and the Department of Arts, Sport and Tourism is to investigate the possibility of acquiring private finance for the purposes of building the proposed stadium.
Advertisments are due to be placed in national newspapers on Friday seeking interest from the private sector in the project.
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Artist's impression of the proposed National Stadium at Abbottstown
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The Government in a statement released this evening said it was `not in a position to provide exchequer funding' for the project.
The GAA has said in relation to the use of Croke Park that any change in the organisation's rules would require the consent of Congress.
Seán McCague, the organisation's President, has said he did not understand how an application to stage such an event (as Euro2008) could be made without the relevant grounds in place.
The original bid for Euro2008 was made without consultation with the GAA and any responsibility for disappointment would lie with those who made the bid.
Referring to the upcoming visit to Croke Park by officials from UEFA apparently to assess the ground's suitability for the tournament, the GAA said it had not received any formal application from anyone regarding the UEFA delegation.
The FAI is to meet this Friday to discuss the issue and has said it would release a statement on the decision following that meeting.
The decision, which is seen as a victory for Mary Harney's Progressive Democrats, has been criticised by the Irish Rugby Football Union which has stated its disappointment with the decision.
The organisation said it was `very disappointed' and `frustrated' as another opportunity to build a national stadium had been lost.
The Taoiseach, Mr Ahern, met the Tánaiste, Ms Harney, earlier today to try and settle their differences over the controversial "Bertie Bowl".
No details emerged after the meeting this morning, but it is understood the subject was discussed at the Cabinet meeting this afternoon.
The Taoiseach said yesterday there was no rift between the Coalition partners over his plans for the stadium at Abbottstown and said he remained committed to the project.
However, Ms Harney, citing the current economic climate, wants Lansdowne Road to be developed and Croke Park be opened up instead.
It was expected the Taoiseach would propose this morning that funds for the €400 million national stadium be raised through the new National Development Finance Agency, which he hopes to be set up by January next year.