Dublin City Council officials have said they are not going ahead with a plan to leave illegally dumped rubbish on the streets.
However, they have warned that the problem has reached unsustainable levels in some areas.
Figures released by the council show that the volume of illegal dumping has doubled in some areas within the past six months and the problem is now costing a total of €670,000 a year.
Although it has privatised bin collection, the council is still required to carry out street cleaning.
Private waste companies such as Greyhound and City Bin can ignore untagged refuse bags, but the council is required to collect them.
Brendan Hayden, senior executive officer in the council's Central Area, said increasing numbers of residents are choosing to leave rubbish on the street as a way of avoiding bin charges.
Council officials had proposed leaving illegal waste uncollected for around five days as a deterrent, but now say this plan is "on hold" because of opposition from residents and local councillors.
Council staff say that the amount of illegal waste being collected in the Central Area alone is now an estimated five tonnes a day, which is up from two to three tonnes six months ago.
The cost in the Central Area is around €250,000 and over one third of the total cost across the city.
The Central Area covers Cabra, Broadstone, North Wall, East Wall, Drumcondra, Ballybough, Phibsboro and the north city centre.
Fianna Fáil councillor Mary Fitzpatrick said part of the problem is that 40,000 households who used to get waivers from the council are now being expected to pay.
She said the whole problem was caused by the "flawed decision" by the city council to privatise the bin service.
The council will be presenting new proposals to local councillors within two weeks.