Former presidential candidate Dana, who is to return from the US in February to live in Co Cork, will contest the European elections in June, The Irish Times has learned.
The Derry-born singer will stand as an independent in the Euro constituency of Munster, despite widespread speculation that she was likely to seek the support of voters in Connacht-Ulster.
Since confounding pundits by securing just under 14 per cent of the presidential vote in November 1997, 45-year-old Dana (Mrs Rosemary Scallon) has expressed an interest in entering full-time politics.
Her political stance is seen as drawing heavily on traditional Christian values.
A source close to the 1970 Eurovision Song Contest winner said that while advances had been made to her by Fianna Fail and Fine Gael over the past year, Dana had decided to remain politically independent.
He said that analysis of voting patterns in the presidential election had suggested that Dana enjoyed an encouraging level of support in the Munster area. She polled almost 55,000 first preferences and a significant proportion of second preferences. It "made more sense", he said, to seek election there.
However, Dana performed most strongly in the presidential election in traditionally conservative Connacht-Ulster, where she secured a 17.68 per cent share of the vote - in Donegal she received an almost 25 per cent share.
This contrasts with a 12.81 per cent share in Munster. Dana, whose pro-life views are well-known, will face strong competition from sitting MEPs in the four-seater constituency: Mr Pat Cox (Ind), Mr Brian Crowley (FF), Mr Gerard Collins (FF) and Mr John Cushnahan (FG).
Independent TD Mr Jackie Healy-Rae has already expressed an interest in standing in the election next June and his candidacy could provide Dana with an even greater struggle for a seat in the European Parliament.
Dana has been based in Birmingham, Alabama for the past five years where she has presented a Christian talk show for the Eternal World Television Network and continued her singing career. In recent months she has been completing final work engagements in preparation for her return here.
The singer is said to want to set up home in February in the Kinsale or Cobh areas of Cork. Her eldest daughter, Grace (18), will attend Trinity College, Dublin or University College, Cork. The singer will travel here in just over two weeks to find a home and make preliminary arrangements for her candidacy.
Last February she said she was "quite interested" in contesting the European elections but expressed concern that it would involve a lot of time away from her children. She added that politics was a door she did not want to close.
Dana is currently on holidays in New York with her husband, Damian, and their four children and could not be contacted for comment yesterday.