The Government is considering a proposal to set up a multimedia museum commemorating the life of James Joyce at the Digital Hub in Dublin to coincide with the centenary of Bloomsday in 2004.

The Ulysses@The Digital Hub project is backed by RTÉ and Digital Media Development Limited, the company which is managing the development of the Government's €250 million Digital Hub.

The project has also received the backing of two prominent universities, the State University of New York at Buffalo (US) and the University of Ontario (Canada). These institutions have access to collections of original Joyce works which could be used in a multimedia exhibition.

It is understood Mr Ed Mulhall, head of news at RTÉ, has also met the trustees of the Joyce estate, although it is not clear if they would back the project.

Proponents of the Ulysses project believe the multimedia museum would market itself as a major centre for tourists, but would also provide a range of research and educational material.

Based at the Government's Digital Hub in the Liberties - which is currently being developed at a cost of €250 million to attract digital media companies - the project would use the latest multimedia techniques to show Joyce's works.

The museum would be based at St Patrick's Tower at the Digital Hub, which is scheduled to be renovated by 2004. A feasibility study of the project was recently undertaken, and the Government is waiting for further information from the sponsors of the project.

A Government spokesman said it was aware of the project but discussions were still at an early stage. It is unclear who would fund the project, but it is believed a mix of public funding and private sponsorship would be sought.