It is understood Minister for Education Batt O'Keeffe is to order a team of consultants to investigate how universities and other institutions are spending the €2bn they receive in funding each year, as part of an overall review of the sector.
General Secretary of the Irish Federation of University Teachers, Mike Jennings, has welcomed the move.
However, speaking on RTÉ Radio's Morning Ireland, he also urged the minister to fund universities properly.
Mr Jennings said in recent years academic staff had been forced to take on more administrative duties which has taken them away from their core functions of teaching and research.
He described the current third-level system as 'creaking at the seams' and called on Mr O'Keeffe to examine how it is being funded.
Mr Jennings said he was pleased to see that the minister was prepared to look at the 'serious problems' within the universities.
