The Minister for Finance is to sell another 5% of the State's stake in AIB, which would see the bank exiting majority ownership for the first time since the financial crisis over a decade ago.
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 51.9% to approximately 46.9%.
132 million shares will be sold as part of the process.
Michael McGrath also announced that he has agreed to extend the AIB share trading plan for a further six-month term.
"Following the extension, which will become operational following the expiration of the applicable lock-up, the trading plan will now terminate no later than 23 January 2024," Minister McGrath said.
He added that no more than 15% of the expected aggregate total trading volume in the bank would be sold over that period.
In total, approximately €698 million has been raised from the AIB trading plan since it became operational in January 2022.
