Restaurants and gastropubs are expected to be told to close on Christmas Eve under plans going to Cabinet this morning.
The ban on flights from the UK, which is set to expire at midnight tonight, is also being extended until the end of the year.
It comes as Ministers have been warned Level 5 restrictions will be needed after Christmas.
Last night the Chief Medical Officer Dr Tony Holohan made a presentation to the Coalition party leaders last night setting out a stark picture of rising case numbers as well as fears over the new strain of the virus emerging from the UK.
Following the meeting a number of recommendations are going to Cabinet today including the closure of the hospitality sector, from mid-afternoon on Christmas Eve, along with hairdressers, barbers, beauticians, cinemas and galleries.
Non-essential retail will be allowed to remain open.
Sources said there will be supports for those businesses that will have to close, but it is unclear whether these will be new schemes or the re-introduction of existing supports.
The ban on intercounty travel will begin once again on December 27th. There will however be exemptions for returning to work, allowing people who may have travelled for Christmas to return to their own county after that date if necessary.
The details on when restrictions on household visits will tighten will be debated at Cabinet this morning and an announcement is expected later today.
