The Education Minister Ruairi Quinn has paved the way for some Institutes of Technology to become universities.
Three groups have already expressed an interest in becoming Technological Universities including one that will merge DIT, IT Tallaght and Blanchardstown in Dublin.
While it is hoped the new legislation will be passed by the summer, the criteria that the new universities need to meet will be very strict.
Mr Quinn says this is about making sure the colleges have the structures in place to become universities.