The Government has arranged for a Dáil debate on the final report of the banking inquiry to take place on Thursday, clearing the way for the general election to be called next week if the Taoiseach chooses to do so.

The banking inquiry report is due to be published on Wednesday and a debate on it will be held in the Dáil on Thursday. Government sources said the debate would continue into next week if necessary.

The whips of the various parties on Tuesday agreed to the timing of the debate on the banking inquiry, which will be led by the TDs who sat on the inquiry.

It effectivley means there will be no impediment to Taoiseach Enda Kenny calling the general election, once the Labour Party conference, taking place in Mullingar on Saturday, is out of the way.

Mr Kenny has committed to holding a three week election campaign.

However, some Government sources said a number of Fine Gael backbenchers want to wait until March to hold the election, although this view is not shared by others at the top of the party.