The Minister for Finance is to sell another 8% of the State's stake in AIB.
The stake will be sold through an institutional placing, with the price to be set by an accelerated "book building" process.
This is method of offering shares for sale to the market in a short time period of one to two days, with little or no marketing.
The sale when complete will see the State’s shareholding in the bank reduce from 62% to 57%.
134 million shares will be sold as part of the process which will begin immediately.
"Details of the Placing Price and the exact number of Placing Shares will be announced in due course," the Department of Finance said in a statement to the stock market.
Goldman Sachs, Goodbody Stockbrokers and J.P. Morgan Securities have been appointed joint bookrunners to conduct the sale while Rothschild and Sons and William Fry are acting as advisors.
Paschal Donohoe has also committed as part of the process not to sell any more shares in the bank for 90 days after it is complete without the consent of the three bookrunners.
Last December, Mr Donohoe announced he was beginning a process to sell down a portion of the State’s shareholding in the bank over the following six months.
At that point, the State still owned 71% of the lender.
In June the Government raised €305m from the sale of a block of 5% of the bank, bringing its shareholding to 63.5%.
It then paused the process, but in September, the department said it was to resume the share trading plan.
It said the plan would end no later than 24 January 2023, unless further extended by the Minister, and no more than 15% of the expected aggregate total trading volume in the bank would be sold over that period.
