Acting Foreign Affairs Minister Charlie Flanagan has said that abolishing Irish Water would not be in anyone's interest.
Minister Flanagan said that Fine Gael's position on the utility is very clear.
Scrapping Irish Water is said to be a red-line issue for Fianna Fáil in Government negotiations.
However, Minister Flanagan said that he believes they can find common ground elsewhere.
"I don't believe that it's in anybody's interest to abolish Irish Water," he said.
"I think there are legal and wider European dictates as far as that's concerned.
"But there's issues in health, there's issues in housing, there's issues in rural development upon which I believe we can make some progress."