The Department of Transport says it does not have the money to progress plans for a Cork to Limerick motorway.
The proposed M20 route is expected to cost between €800m and €1bn.
Initial plans set the route between the two cities via Mallow and Charleville.
But the Government is reportedly considering scrapping the route in favour of upgrading the N24 between Cahir and Limerick.
Dr James Ring, CEO of Limerick Chamber of Commerce, says a direct Cork to Limerick motorway is needed, however.
"Ireland needs a strong Dublin, but Dublin needs a strong region, and Cork, Limerick and Galway are dots on a map," he said.
"And on a global scale, we're non-players really. But bring the three of them together and you're starting to form a critical mass, up along the west coast of Ireland.
"The three cities should be working together to try and help the country, not trying to fight over the scraps off Dublin's table."