Minister for Finance Paschal Donohoe has said he still believes a no-deal Brexit can be avoided but has acknowledged that it is a risk that is growing.
Mr Donohoe, who met British Chancellor Sajid Javid in London yesterday, said both had fully outlined their respective positions.
Speaking on RTÉ's Morning Ireland, the minister said it is important the UK, and the EU and Ireland, continue to engage with each other but the Government would have to make a call as the end of October deadline approaches.
He said it is important in the coming weeks that we have an acknowledgement that even in a no-deal scenario, the United Kingdom and European Union will continue to work with each other.
Mr Donohoe said he believes a "cliff edge Brexit" can be avoided.
"Because of events in recent weeks, the prospect of a no-deal Brexit is a risk that is growing. The Taoiseach and those of us who have the privilege of being in government will need to make a call as we approach October 31st regarding what we believe is the most likely scenario, and what is the appropriate economic strategy for our country, and political response to such a scenario unfolding."
Minister Donohoe said that even in a no-deal situation, the issues that we have been grappling with for the last three years will still be there.
He said that the need for the UK and the EU to continue to work with each other will be there.