Labour Party finance spokesperson Joan Burton said the move would send out a message of 'no change' in the banks and would be contrary to the principles of good corporate governance.
Reports suggest that current AIB chairman Dan O'Connor is set to be appointed executive chairman, ending a stand-off between the Government and the bank's board over the appointment of a new chief executive to succeed Eugene Sheehy.
The Government is said to want an outsider to take over at the bank.
'Having provided more than €3bn of taxpayers' money to recapitalise AIB, the Government should continue to insist on the appointment of an outsider to the position of chief executive,' Ms Burton said.
She also added that a Grant Thornton report on corporate governance, commissioned by the Irish Stock Exchange and published earlier this year, strongly recommended that one individual should not be allowed to be both chair and chief executive of any company.
Earlier, Independent Senator Ross said the bank was now proposing, as an interim solution for a year, to appoint an insider as executive chairman.
He said that suggestion defied all the rules of good corporate governance, as it would give one man too much power and that should not be allowed.
