Ireland can only support one world-class specialised children's hospital based on its population size, according to a report published by the Health Service Executive.
The report says the hospital should be located in Dublin close to a main adult hospital.
Support services for children would also be provided at up to three A&E facilities around Dublin.
A joint HSE/Department of Health and Children task force is to be set up and will conclude its work within two months.
The task force will propose the location of the new specialised hospital.
The report, commissioned from outside consultants for the Health Service Executive, has major implications for the future of the Children's University Hospital Temple Street in Dublin.
Plans for Temple Street to move to the new Mater Hospital campus development were recently put on hold, pending the outcome of this review of paediatric services.
The medical board at Temple Street claims concrete plans for it to go to the Mater have been sabotaged.
Our Lady's Hospital for Sick Children Crumlin, the Children's University Hospital Temple Street and the National Children's Hospital at Tallaght currently provide specialised and general services for the country.
