It is understood that Dublin's Mater Hospital site could once again be the preferred location for the National Children's Hospital, after the religious order which owns the hospital put forward a new proposal.
The Sisters of Mercy have given their support to a plan in which the original hospital building would be given to the State to use as teaching and research facilities for a new children's hospital.
Plans to develop the children's hospital at the site were refused by an Bord Pleanála in February, because of the impact the 16-floor building would have on the Dublin skyline.
The National Children's Hospital Development Committee will include the proposal in its submission to a review group, set up to recommend the final site.