Lynam's Hotel on O'Connell Street could become a dedicated accommodation facility for the homeless.
It follow an offer by Nama to facilitate its sale to Dublin City Council.
Five homeless families are facing eviction at the end of next month from the hotel which has to be sold as its in receivership.
The hotel was due to be vacate by August 1st but the deadline was extended until the end of the month to allow prior bookings to be honoured and accommodation to be found for the homeless families.
It's understood Nama has told the council it is willing to facilitate the sale of Lynams to the council for use by the Dublin Region Homeless Executive.
