Government is to be advised later this month that the plan to develop Casement Aerodrome, Baldonnel, as a civil airport is not a practical proposition, according to informed sources.
The Minister for Transport, Mr Lowry, has already decided against Ryanair's £50 million scheme on the basis of advice from his own Department that it would almost inevitably require Exchequer support.
Mr Lowry is understood to have held a number of meetings with Ryanair's founder, Dr Tony Ryan, and is now awaiting a final response from the company to his Department's assessment of the project.
Though Dr Ryan insists that the proposed "Dublin City South" airport would be financed by the private sector, it is unclear whether this would extend to improving the road infrastructure and paying for emergency services.
The Minister is said to be unconvinced of the need for another international airport, given that Aer Rianta is currently involved in a £95 million investment programme at Dublin Airport, including a major terminal extension.
"A second airport is something that might be considered down the line, but there's no pressing need for it at this stage", said one source close to Mr Lowry. "However, he is anxious to facilitate Ryanair in other ways."
This would include concessions on landing charges at Dublin Airport, which have been a bone of contention between Ryanair and Aer Rianta.
Mr Lowry is not prepared to make a public announcement about the position he has taken on the Baldonnel project until he has first informed his Cabinet colleagues.
Given that Baldonnel is the principal base of the Air Corps, the Department of Defence, would have been consulted about the matter. Ultimately, therefore, the final decision would have to be taken by the Government.
Residents in the vicinity of Baldonnel had been preparing to campaign against the plan and were counting on support from the southern suburbs after people living there realised they would be in the flight path to Baldonnel.