The assessment of need (AON) system is "no longer fit for purpose," according to Minister of State with responsibility for Disability Hildegarde Naughton.
In a statement to RTÉ's Morning Ireland, she confirmed that it is intended a memo will be brought to the Government in early December, which would seek permission to draft legislation to reform the process.
Over 18,000 children are now overdue for an assessment of need, as the Government prepares to consider the memo next month, which would reform the process.
As of the end of September, 18,097 children were overdue for an assessment, according to the latest figures published by the Health Service Executive, representing an increase of 1,504 since June.
16,593 children were overdue an AON at that stage.
Under the Disability Act, a child is entitled under statutory law to a needs assessment within six months of a referral from the HSE.
At the same point last year, the number of children waiting for an assessment was 12,722, while it stood at 7,608 at the end of September in 2023.
Ms Naughton added that work had been conducted to deliver an "effective" AON system.
"It is clear that the Assessment of Need is no longer fit for purpose and I want to assure parents and families that intensive work has been under way to deliver an effective and efficient assessment of need system," she said.
"This is an absolute priority for me as minister and for this Government. It is important to note that children do not require an assessment of need to access health services, whether primary care, children's disability network teams or mental health services."
She added: "In recent weeks, we have been working intensively with my department to establish a quicker and more efficient way for our assessment of need system, and critically for children and families to access services and therapies across the country.
Ms Naughton confirmed that any new legislation will not include changes to statutory rights to an assessment, which means the requirement to complete AONs within six months would remain.
"The memo will include the heads of a bill which I anticipate will be drafted at pace with the intention of quick publication, and thereafter, progression of the bill through the Oireachtas."
In the first quarter of 2022, waiting lists had fallen to as low as 1,718.
However, in March of that year, the High Court found that the HSE's preliminary assessment approach did not meet the requirements of the Disability Act.
In May 2024, the Government launched the targeted AON waiting list initiative, which was aimed at addressing waiting lists by using funding to hire private providers to complete assessments for families who have been waiting the longest.
Under that scheme, the State has paid €22.9 million to complete 6,378 AONs - an average cost of €3,595.49 per assessment.
In a statement, the HSE has said AON applications had "risen steadily" since being implemented under the Disability Act in June 2007.
"In 2008, the first full year of the implementation of the Disability Act, we received 2,535 applications for assessment of need; we could receive as many as 13,000 applications in 2025 (based on 9,570 to date this year), representing a five-fold increase," the statement said.