The Government intends to restrict short term lets in towns with a population of more than 20,000.
An agreement was reached in principle following discussions between Government party leaders and Minister for Tourism Peter Burke on the issue last night.
Initially the restriction was set to cover towns with a population of 10,000 but a significant change to this proposal is now in the offing.
It is understood that Minister Burke emphasised that operators need clarity.
Legislation which will require all short term lets to be planning compliant will be discussed by an Oireachtas committee later in the week.
The Department of Housing is also set to soon come forward with a planning statement on this often fraught topic.
