A proposal to cut the €3,000 third-level student charge is expected to go before cabinet in February.
The Irish Times reports a reduction of as much as €1,000 could be sought.
The level of a reduction, if any, would not be agreed until the budget, it is understood.
Minister for Higher Education Simon Harris has previously indicated his desire to reduce third-level fees and reiterated his intention in a recent Fine Gael newsletter.
He wrote “We believe the contribution fee is too high and prevents many people from accessing higher education,”
“We want to change that.”