The format for a new type of statutory inquiry will be brought before the Cabinet for approval next week by the Minister for Justice, Mr McDowell.
Pointing to the high cost and adversarial nature of the current tribunal structure, the Minister said there was a need for another investigative format to reduce time and costs.
This new format could be employed in as the basis for the inquiry into allegations of clerical sex abuse in the Dublin Archdiocese, which the Minister told the Dáil last week the Government would initiate.
The new format could act as a precursor for a tribunal or as an alternative stand alone investigation, the Minister told RTÉ radio this morning.
He added that the Minister for Health Mr Martin was also looking at alternative forms of inquiry, including a mechanism for a possible investigation of US-based multinational pharmaceutical companies whose products were implicated in the infection of haemophiliacs with HIV and hepatitis C.
The Minister for Health and Children, Mr Martin has said following advice from Mr Paul Gardiner SC it was possible to mount a useful investigation which would allow access to publicly available material and to persons and bodies willing to co-operate.
Denying suggestions that he considered such an action a waste of money, Mr McDowell said: "I don't think we should rush into making false comparisons between particular actions taken in particular states."
Mr McDowell said he "would love to know" what happened in America and would love to know whether Armour or these drug companies turned a blind eye to what was going on.
But he said: "This is not a case in which you can engage in pure gestures. If you engage in a multi-million pound lawsuit you must know you have a good chance of success."
Mr McDowell also said he was working on streamlining the processing system for asylum seekers. He hopes to "turnaround applications" within six months and also reduce the current budget of up to €300 million annually spent in this section of the Department.
