The Government is to postpone a decision which had been expected today on plans to build a 50,000-seater stadium at Lansdowne Road, amid new doubts about the viability of the project.
The joint IRFU/FAI proposal had been expected to be approved today after over five years of political dispute over a national stadium.
The Minister for Sport, Mr O'Donoghue, has said several times in recent weeks that a decision would be taken by the end of January.
However, last night it seemed likely that this deadline would not be met amid concern that residents' objections could hold up the plan for years as well as other construction-related issues.
Ministers may discuss the issue again today but well-placed sources said last night that a decision was very unlikely. Mr O'Donoghue has prepared a memorandum for Government offering Ministers two options: The Lansdowne Road project or a larger 65,000 seat stadium at Abbotstown.
The Taoiseach has long championed the Abbotstown proposal, while the PDs favour a Lansdowne Road redevelopment. Recently the Taoiseach has said he is not "hung up" on Abbotstown, and there has been a growing expectation that the Lansdowne plan would be approved tomorrow.
However, concerns remain over the extent of possible planning objections, drainage difficulties and question marks surrounding access for fans.
The Dublin 4 development would face a major planning battle as local residents' groups have already given vocal notice that they will fiercely oppose the €250 million plan. Investigating a number of options late last September, the Office of Public Works warned that a stadium holding more than 45,000 seats would run into major planning hurdles.
Following the publication of the OPW letter by The Irish Times in December, OPW chairman, Mr Sean Benton, told the IRFU and FAI that its fears did not apply to their proposed project, because of the design used.
The latest plan, which was presented to Minister O'Donoghue in early December, would offer 50,000 seats, a retractable roof and other world-class facilities, supporters say.
"This has been around a hell of a long time. People are exhausted with it. Nobody wants to say it is settled until it is signed, sealed and delivered," one Government source told The Irish Times last night.
Government approval would offer the chance, but not the guarantee, that Ireland's 2006 World Cup qualifying games could continue to take place at Lansdowne Road, despite seating difficulties.
The qualifying campaign should end before the stadium plan, if finally approved by the Government, completes its passage through the planning process.
Currently, Lansdowne can host 33,000 soccer supporters for competitive games. Ireland's World Cup qualifying calendar will be agreed next Tuesday when the FAI, along with the soccer bodies from France, Israel, Switzerland, Cyprus and the Faroe Islands meet in Dublin.
If FIFA refuses to grant the FAI a further derogation, the association will be forced to organise Ireland's home games in Parkhead in Glasgow, the Millennium Stadium in Cardiff, or Old Trafford in Manchester.