Sports Minister Shane Ross has not ruled out splitting the FAI into two separate bodies.
He said he was open to “any constructive ideas that come forward” adding: “We’ll look at any suggestion coming through.”
The plan, originally floated by FAI staff members, is expected to be brought before the Government.
The plan would see the State fund a new body to govern grassroots and community football, while the FAI would continue to manage international teams and elite level football.
Backed by FAI critic and former national team manager Brian Kerr, it suggests the Government would pump €10million per year into the new body – with the FAI funding itself through commercial deals.
The cash-strapped association had its €2.9million annual State funding suspended in April.
Its latest accounts show it has liabilities of €55million.
Speaking on the future of the association, Mr Ross added: “We’ve withdrawn that funding. We’re going to ensure it gets to the small clubs. We’re going to absolutely ensure it gets to the players, to the grassroots.”
He insisted the Government’s priority was to “protect taxpayers’ funding” that his department will ensure State funding “doesn’t go near the FAI” in its present form, which he described as a “basket case”.
He said: “To ask the Government to come in and bail [the FAI] out when we don’t even know the extent of the blackhole there is an appalling vista.
“We want to protect taxpayers’ funding and the grassroots, they’re the important people.
“We’re interested in football, not so much interested in the FAI.” Speaking on RTE Radio One’s Morning Ireland, Mr Ross revealed he hadn’t been in contact with the FAI for several months and slammed its resistance to reform.
He added: “I haven’t been speaking to the FAI for several months, mainly because it’s full of the old guard and because its governance is in a situation which is unacceptable. It is reluctant to change.
“It hasn’t been changed, its board hasn’t even been totally cleared out.
“To expect us to go in and accept them as a government, we’re not going to do that.
“Not until we see clear signs of reform of corporate governance and new people and a total cleanout.”
Last week, the FAI confirmed its president Donal Conway would be stepping down on January 25.
