Minister for Transport Darragh O'Brien said he is "hoping" for an agreement between the board of Dublin Airport Authority (daa) and its chief executive Kenny Jacobs.
Legal teams representing both sides are currently locked into negotiations which could lead to Mr Jacobs leaving the organisation.
Speaking on RTÉ's Morning Ireland Minister O'Brien confirmed any exit package, which would to be paid to Mr Jacobs would have to be approved by the Minister.
Asked if he had received details of an exit package for Mr Jacobs, Minister O'Brien said: "we haven't got there yet."
Minister O'Brien said that Mr Jacobs and his team had been "central" to delivering growth at Dublin Airport.
The talks between the two legal teams are expected to continue over the coming days.
Mr Jacobs has led the state body which is responsible for the operation of Dublin and Cork Airports since January 2023.
There have been reports of tensions between the board of directors of the daa and Mr Jacobs.
He is understood to have been subject to two protective disclosures which have not been upheld, meaning the chief executive was exonerated.
Read more: Talks to continue over future of Kenny Jacobs as head of daa
The Department has been kept informed of developments and Mr Jacobs remains in position.
Any exit package for Mr Jacobs would also have to be approved by the Minister for Public Expenditure and Reform Jack Chambers.
It is understood that the Government's position is that any settlement for Mr Jacobs would be tied to his entitlements.
The daa annual report said: "Total remuneration in respect of Mr Jacobs for 2024 amounted to
€374,830 (2023: €347,457) which included basic salary of €284,235 (2023: €267,837) and pension contributions and other taxable benefits of €90,595 (2023: €79,620)."
The daa board is due to meet in Cork in a pre-scheduled meeting on Friday.
A spokesperson for the daa declined to comment on the negotiations regarding Mr Jacobs' future.
Airport passenger cap will stifle growth - O'Brien
Meanwhile, Minister O'Brien said retaining Dublin Airport's passenger cap will stifle its growth.
The Department of Transport will begin the process of removing the Dublin Airport passenger cap in the coming weeks.
The cap, which stands at 32 million passengers per year, was imposed in 2007 as part of the planning conditions around the development of Terminal 2.
At the time, the airport had about 23 million passengers.
Legal proceedings by airlines have effectively suspended the cap, with questions referred to the European Courts.
Speaking on RTÉ's Morning Ireland, Mr O’Brien said the airport is a "critical economic driver for the country, not just for the region, and any stifling of that growth obviously has a direct economic impact".
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"I've had a series of meetings over the course of the last number of months, particularly with our legal advisors, and I'll be coming forward to Cabinet, hopefully before the Budget, with legislative options that is in seeking approval to proceed with drafting Heads of Bill and the general scheme," he added.
Mr O’Brien said he was in favour of the removal of the passenger cap, which could see up to 60 million passengers pass through the airport per year, if the growth was managed in a sustainable manner.
"You have obviously got to do that on a phased basis. One is not going to jump from 36 million to 60 million in the course of one, five, ten years," he said.
He said a "couple of very significant planning decisions" have been made.
"The night flights issue has been addressed in July, which gives clarity to the airport and indeed to residents around the operation of the airport at night," he said.
"We're expecting, very, very shortly in the coming weeks, a positive decision on Metrolink, which is a transformative project for the airport, and indeed for the region."
"The physical infrastructure around the airport that existed back in 2007 when this planning permission was granted and that condition was put in place, has changed greatly and will change further," he added.
Mr O’Brien said that there would "unquestionably" be an increase in greenhouse gas emissions if the passenger cap is removed, but added that the aviation sector had responsibilities to combat that potential increase.
"What also is in that [planning] application, and which is understood in the aviation sector, is the responsibilities they have to bring forward the use of alternative fuels, such as SAF (Sustainable Aviation Fuel)," he said.
"Airplanes are far more advanced technologically now and are more efficient in relation to fuel use.
"We have obligations on the climate side and I'm acutely aware of that as Minister with responsibility for that.
"We've seen emissions reduce over the last two years in Ireland, whilst our economy and population continues to grow. So we're making advances in many areas, and this is a balance that we will have to strike."
Mr O’Brien said he had already met with a number of residents groups to hear and discuss their concerns.
"I have met with the residents group from St Margaret's over the summer," he said.
"I'll be meeting with them again. I've met with residents in Portmarnock. I know the area intimately as I've spent my whole life here.
"I also know that there are many residents here who understand we need to grow the airport, and indeed a lot of those residents do, and there are others who have concerns and I continue to engage with them, absolutely."
'Inevitability' around cap removal
A member of the Oireachtas Transport Committee member says there has been an inevitability about the removal of the cap at Dublin Airport for some time.
Fianna Fáil TD Cathal Crowe, said aviation likes certainty and if an airline doesn't feel it is being properly accomodated it can easily move to another jurisdiction.
Legislation takes time, he said on RTÉ's Today with Claire Byrne, and will probably be passed sometime next year.
Mr Crowe said aviation has come on "light years" and there are more efforts underway to make aircrafts more environmentally friendly.
He added that Ireland is an island nation that needs connectivity and economic development.
Opportunity to examine airport activity regulation - O'Gorman
Green Party leader Roderic O'Gorman said if the cap at Dublin airport is changed, it could be an opportunity to examine whether passenger numbers is the right way to regulate activities at Dublin Airport.
Roderic O'Gorman said there could be an opportunity to look at emissions and noise and reward those airlines that are upgrading their fleet and using quieter and more fuel efficient aircrafts.
"We have to understand the scale of what Minister O'Brien is proposing, and we should be regulating Dublin Airport in terms of what is generated by increased passenger numbers," he said on RTÉ's Today with Claire Byrne.
"Focusing on the actual emission of the passenger brings a greater degree of fairness into the equation," he added.
More aircraft means more noise
A spokesperson for St Margaret's The Ward Residents forum says more aircraft will mean more noise and there are already outstanding issues in relation to noise from Dublin airport.
Niamh Maher said residents find it "incredulous" that the Minister for Transport would remove the cap without resolving these issues first.
"The problem extends past St Margaret's The Ward to everywhere a flight path crosses over," she said.
"If there's an increase in passenger numbers, which equals increased flights, that is going to get even worse," she added.
