The Office of Public Works has shortlisted three Dublin city-centre sites for a new Abbey Theatre, and the options are now being considered by the Minister for the Arts, Sport and Tourism.
The list does not include the former Carlton cinema site on O'Connell Street, although if legal problems affecting that project were resolved quickly, it could yet re-emerge as a possibility.
The three other options presented to Mr O'Donoghue are all understood to be in the inner city, and all meet the broad specifications set out by the Abbey.
Speaking outside the theatre last night, the Minister pledged to bring his recommendation to the Cabinet "very soon".
Mr O'Donoghue has said repeatedly that he wants to announce plans for the Abbey's redevelopment during its centenary year, which ends on December 28th.
Asked if the theatre would be staying in the Taoiseach's constituency, the Minister said that constituency considerations were "not pivotal" to any decision.
Also speaking at the Abbey last night, the theatre's artistic director, Mr Ben Barnes, rounded on critics who had tabled a vote of no-confidence at an extraordinary general meeting of the Abbey board on Tuesday.
Mr Barnes said he was "very relieved that this ordeal is over and that the attempt to single me out for the systemic problems of the Abbey by elements within the shareholding body has been overwhelmingly rejected.
"What is important now is that these events are put behind us and that the executive, staff and board of the theatre work with our partners in the Arts Council and Government on restructuring the operation and finances of the Abbey to ensure that the national theatre's contribution to the next 100 years can be as meaningful as the first."
Both Mr Barnes and Mr O'Donoghue were attending the unveiling by the Taoiseach of James Hanley's triptych commemorating the debut performance of The Playboy of The Western World - a special, commissioned to mark the centenary.
The painting was presented on the stage of the theatre before an audience which included Ms Christine Shields, daughter of Arthur Shields, who played Christy Mahon in the riot-disrupted 1907 production.
Mr Hanley, who also painted an official portrait of the Taoiseach which was unveiled earlier this year, said his triptych represented the three essential elements of theatre: "authorship, acting, and audience."
In a short address from the stage, Mr Barnes drew warm applause when he welcomed the fact that "art is back centre stage, and we should all be determined that it stays there".
Afterwards, Mr Barnes defended himself against criticisms over his absence when cost-cutting plans were announced last week.
"The Brisbane Festival always opened on the 4th of September. I had always said that if the egm was scheduled on that day, I couldn't be there.
It's very important that as artistic director, I should be at a prestigious festival abroad. I wasn't having a holiday, I was working for the theatre."