The Government is to make a decision before the end of the month on whether to build a national stadium, with growing speculation that a redeveloped Lansdowne Road will be the favoured option.
The Minister for Arts, Tourism and Sport, Mr O'Donoghue, is to bring two options to the Cabinet within weeks for a 65,000-seater stadium in Abbotstown or a 50,000-seater stadium in Lansdowne Road.
In a significant shift from his support for Abbotstown, Mr Ahern said in a weekend interview that he was not "hung up" on the location of a stadium.
The Tánaiste, Ms Harney, has also restated her opposition to Abbotstown in favour of a redeveloped Lansdowne Road.
The decision to opt for Lansdowne Road would represent a major blow for Mr Ahern and signal an end to the row which strained relations between Fianna Fáil and the PDs during their six years in power together.
The IRFU, supported by the FAI, presented plans to the Government last month for a €250 million, 50,000-seater stadium at Lansdowne Road following demolition of the existing stadium.
It is willing to contribute up to €80 million to a new national stadium at the city-centre location, leaving the State with a liability of around €170 million.
Plans for a 65,000-seater stadium at Abbotstown would cost a similar amount to Lansdowne Road, as it would be built on a greenfield site and would not require any demolition.
However, these plans were dealt a major blow when the IRFU said it would be unable to contribute to the construction of Abbotstown, while keeping Lansdowne Road open at the same time.
Mr Ahern's shift in position on the issue brings him closer to the Progressive Democrats, who have consistently opposed the Abbotstown project. Both Fianna Fáil and the PDs pledged to build a "world class" national stadium at an unnamed location in their Programme for Government.
The FAI chief executive Mr Fran Rooney said his organisation wanted a Government decision as soon as possible.