AIB is to make its intentions known after the Government rejected a proposal by the bank to pay its new boss more than the €500,000 salary cap imposed by the Finance Minister Brian Lenihan.
The bank is said to be considering its options.
A senior Executive Colm Doherty has been chosen to fill a new post of Managing Director at the bank.
But yesterday Mr Lenihan said the Government has refused a request to exceed the pay limit set down.
Talks on the appointment continued betwen the bank and the Government continued until late last night.