The government has nominated Mrs Maire Geoghegan-Quinn to the European Court of Auditors, to replace Mr Barry Desmond who will retire in February from the £140,000 a year post.
The former minister, who quit politics in 1997, must go through a ratification process before taking up the job in Luxembourg.
The post is now seen as of considerable importance since the Court of Auditors' major role in the events leading to the resignation of the European Commission early this year.
Mrs Geoghegan-Quinn, in common with all nominees to the court, will face an individual hearing before the Budget Control Committee of the European Parliament in the autumn. The Parliament will then give an opinion to the EU Council of Finance Ministers (ECOFIN), which will then make the formal decision on whether to appoint her.
The EU stipulates that members of the court shall be people who are, or have been, members of external audit bodies in their own country or "who are especially qualified for the office".
While Mrs Geoghegan-Quinn has not been a member of such an audit body, and has no accountancy qualification, the Taoiseach and his advisers believe this is compensated for by her ministerial experience and her business experience since leaving politics, as a director of Aer Lingus and Ryan Hotels.
Mr Ahern said last night that Mrs Geoghegan-Quinn "has a wide experience of all aspects of government and public administration and her ministerial positions - dealing with European affairs, tourism, transport and communications and, most recently, justice - will be particularly relevant to her new role".
Last night, Mrs Geoghegan-Quinn issued a short statement in which she said she accepted the post "with a clear understanding that the role is increasingly important in the European Union".
"The invitation is magnanimous on the part of the Taoiseach. I have indicated to him my absolute commitment to fulfil the trust he has vested in me."
Mrs Geoghegan-Quinn was the first woman appointed to cabinet in the State when she was made Minister for the Gaeltacht in 1979. She has since been Minister for Tourism, Transport and Communications and Minister for Justice.
From 1987 to 1991, she was Minister of State at the Department of the Taoiseach responsible for EU matters and she has also been a junior minister at the Department of Education and Industry, Commerce and Energy.
The 15-member European Court of Auditors is responsible for auditing the legality of EU spending and sound financial management of EU resources. It has regularly highlighted inefficiencies and waste.