The TV licence is set to be replaced by a flat broadcasting charge as part of a new reform.
The Government have agreed to scrap the unpopular fee as more people move away from traditional broadcasting and towards streaming content on phones and laptops.
The new charge will be known as a "device independent broadcasting charge" and will be imposed on people watching content on other devices as well as TVs, RTE reports.
However, it will not be rolled out for approximately five years.
Minister for Communications Richard Bruton acknowledged that current system is facing major challenges as more viewers no longer need a TV in their home.
He said: "It is clear that due to the nature of technological change and the movement towards digital devices, the design of the TV licence fee will have to change".
He added: "This is a fundamental reform that will take time to develop, but it will future proof the funding model, taking account of changes in technology and in how content is now consumed."
The collection of the existing licence fee will also be put out to public tender for a five-year contract.
Minister Bruton said this would allow a more robust collection service and less evasion.
It's estimated 12% of those own a TV do not pay their licence fee at present.
At the end of the five-year contract, the new broadcasting charge will be rolled out.
The spokesman said: "While this decision by Government to tender for collection services is welcome, nonetheless the decision to defer implementation of a revised media charge system means that the crisis in the funding of public service media will continue."
He added: "Latest evasion levels are 13%, significantly higher than in the UK and other European countries.
"The fact is that the number of homes that do not have a traditional television set - but who are nonetheless consuming public service content - is increasing rapidly and the current television licence fee mechanism reflects less and less how people consume public-service content.
"When added to the evasion rate, currently close to 25% of homes are now not paying the TV licence due to an outdated and inefficient system."
