Talks are expected to continue over the coming days between legal representatives for the chief executive of the Dublin Airport Authority (daa) Kenny Jacobs and lawyers for the board of the organisation.
Sources say the negotiations could lead to the departure of Mr Jacobs who has led the state body which is responsible for the operation of Dublin and Cork Airports.
The Department of Transport said the issue is a "matter for the board of the daa".
There have been reports of tensions between the board of directors of the daa and Mr Jacobs.
Mr Jacobs is understood to have been subject to two protective disclosures which have not been upheld, meaning the chief executive was exonerated.
The Department has been kept informed of developments and Mr Jacobs remains in position.
Any exit package for Mr Jacobs will have to be agreed by Minister for Transport Darragh O'Brien and 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.
Mr Jacobs joined the daa in January 2023.
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.
