Irish Erasmus students working in the five EU member states currently on the Government's mandatory hotel quarantine list may not have to pay for the service.
RTÉ News reports that Minister for Further and Higher Education Simon Harris is working on an initiative whereby the Government would pick up the tab.
It is estimated that around 500 Erasmus students are affected by the introduction of quarantine here - but some may return home before it comes into operation later this week, while others could delay until the summer when rules could be different.
RTÉ News understands that the talks on the new plan are at an advanced stage,.
It is believed that the cost of the initiative could amount to €1 million.
Concern had been raised over the cost of mandatory hotel quarantine for Erasmus students returning to Ireland.
Mandatory hotel quarantine costs €1,875 for a 12-night stay.
From 4am on Thursday, 71 countries will be on the list for mandatory quarantine, including five in the European Union - Austria, Belgium, France, Italy and Luxembourg.