Fianna Fáil and the Progressive Democrats have discussed in recent days the possibility of a third terminal at Dublin airport, in an effort to resolve deep Government divisions over aviation policy.
While there has been agreement for some time that a second terminal is needed, the notion of a third terminal has been floated to satisfy PD concerns that there should be competition between terminal operators.
One idea discussed is that any aviation package should include a long-term component involving a third independent terminal. Detailed planning for a third terminal would only begin once the second terminal was up and running. The third terminal would only get the go-ahead if passenger numbers rose towards 30 million.
It is also understood the Attorney General has been consulted over proposals favoured by the Tánaiste, Mary Harney, to exclude the Dublin Airport Authority (DAA) from a tender process to select the operator of a second terminal.
Although journalists were told last week that an aviation package was likely to be brought to Cabinet next Tuesday, significant differences remain between the Coalition partners.
Proposals are said to be "largely ready", but the political differences may scupper the chances of a deal on Tuesday.
Minister for Transport Martin Cullen wants to award the contract to own and build the terminal to the Dublin Airport Authority, but he believes a tender process should be used to decide who should operate it.
It is likely that Aer Rianta International, which has experience with terminals in various overseas locations, may seek to operate the new facility. Aer Rianta International has significant experience in retailing, and this would be an important element in getting a return from any new facility.
Tuesday's Cabinet meeting may also consider the position of Aer Lingus. It is understood Mr Cullen supports selling over 50 per cent of the equity in the airline, but he wants to appoint consultants to advise on the type of sale process and the best time to execute it.