The former Central Mental Hospital could soon be used to house around 176 asylum seekers in tents.
A temporary plan is being examined to use tented accommodation at the site in Dundrum.
Existing kitchens, toilets and showers would be made available.
The government plan is expected to be similar to the set-up at the Gormanstown Army camp in Meath, where a large tent village was built to house Ukrainian refugees.
The Irish Examiner reports the accommodation would be in place for a three-month period, until September.
The site is owned by the Office of Public Works, which is currently being transferred to the Land Development Agency.
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