The Government is prepared to pay over €40 million towards the cost of Northern Ireland's new police training college if it is built in Derry, it was claimed today.
It is understood the Cabinet believe the siting of the academy to train future officers would provide a major economic injection for the struggling northwest region and help cement police reforms.
With a possibility of up to 100 Garda recruits taking part in cross-border training, sources in Belfast and Derry said the Taoiseach will back the venture provided it goes to Northern Ireland's second city.
One source said: "Not only are the Irish prepared to put £30 million sterling into this, but they want to put some of their own officers through it".
A Government spokesman was unable to confirm the plan today, but sources close to the Policing Board in Belfast confirmed the Government was keen to back the initiative.
But the offer - if it is accepted - is set to meet with fierce unionist resistance. They have already fought against intense lobbying by Derry businessmen and politicians to bring the campus to the mainly nationalist city.
The campaign appeared to have collapsed when the city was not on a shortlist of 28 proposed sites.
Under strict criteria the location must include 80 acres of flat land close to a motorway network and within 45 miles of Belfast.
However, sources insisted today that efforts to build the academy close to the River Foyle would heighten with support from the Republic. At least three sites in Derry have been identified, including the old Ebrington army barracks in the Waterside district.
Many believe bringing the facilities to the northwest would send a powerful signal that policing reforms in Northern Ireland have been accepted by all sides.