The European Commission will publish its proposals on easing the implementation of the Northern Ireland Protocol next Wednesday, RTÉ News understands.
Details of the package of measures, covering the movement of medicines and agrifood products from Britain to Northern Ireland, as well as an easing of customs requirements and an enhanced role for Stormont, are being finalised.
However, they have not yet been shared with EU member states.
Sources familiar with the measures say they will be "more far reaching" than people expect.
One source said the proposals will be "difficult" for the UK to dismiss.
Britain's chief Brexit minister David Frost has warned that the UK will not accept "tinkering at the edges" of the protocol.
It is understood the proposals will come with conditions attached, such as a clear commitment that the UK will finally put in place the infrastructure and other obligations in order for the protocol to function.
Two well-placed sources said that the labelling conditions attached to the mutually agreed extension of the chilled meats grace period had not been properly complied with.
After the proposals are published a period of talks between the EU and UK will commence.
The EU's chief interlocutor Maros Šefčovič has said the talks should conclude by the end of the year or early next year.
However, the UK has held out the threat to trigger Article 16 of the protocol if it is not satisfied with the commission's proposals.
Diplomats say member states are giving Mr Šefčovič considerable leeway in seeking flexibilities within the limits of EU law.
The EU will regard the role of the European Court of Justice in monitoring the protocol as a red line, it is understood.
In the context of ongoing anger in Paris on the Aukus submarine affair, and the issue of fisheries, it is understood the flexibilities will not be presented as a "gift" to London, but as an easing of the protocol for the people of Northern Ireland and to benefit the peace process.
DUP leader Jeffrey Donaldson has welcomed the "change of tone" from the EU on the Northern Ireland Protocol.
Mr Donaldson met with Taoiseach Micheál Martin in Belfast to discuss the latest proposals by the bloc to solve the impasse over the protocol.
"I welcome the change in tone, I welcome the change in the language being used. People are now solution-focused.
"They're now talking about negotiations. All of these things were off the table, even three months ago.
"I think that our actions have caused a sharper focus on the need to find a solution that removes the Irish sea border and restores Northern Ireland's place in the United Kingdom."
The Taoiseach said the European Union and British government are in solution mode in the dispute over the Northern Ireland Protocol.
Speaking at a climate conference in Belfast, he said officials are "engaging closely" with all communities in Northern Ireland on the issues cited by Mr Donaldson.
Mr Martin said: "I will be listening carefully to the views of all those I meet today from business, civil society and across all communities.
"My consistent position has been to get the protocol working as smoothly as possible for people and for business in Northern Ireland.
"I have no doubt about the readiness of the EU to engage in good faith in this same spirit."
Mr Martin said the commission has been "engaging constructively" with the British government on what can be done to limit the impact of the protocol on everyday life in Northern Ireland.
He said: "Progressing this work, in a spirit of partnership, working at EU-UK level for agreed solutions is the way forward.
"I know that for business, certainty and predictability is key."
Additional reporting by Vincent Kearney