Dublin City Council is currently in talks with Nama over the purchase of the Irish Glass Bottle site in the Docklands.
According to today's Irish Times, the council then wants to build up to 600 affordable housing units at the location.
It is hoped that this deal will be done within the next few weeks.
However, officials say that the cost of developing the site, which is a former landfill, is going to prove an expensive and difficult task.
Sinn Fein spokesperson on housing, and T.D. Eoin O'Broin welcomes the news, but says the government will have to support the council if homes are to be provided at genuinely affordable prices.
Dublin City Council is working on a number of affordable housing projects across Dublin, but many won't be ready for several years yet.
Plans for several hundred units at O'Devaney Gardens on the Northside of the city are the most advanced, but these won't be ready before the end of 2021.
Projects at St Michael's Estate in Inchicore, Cherry Orchard in Ballyfermot and Ballymun are further than this into the future.