The Government party leaders have been told by the Attorney General that there is now a new context to examine the Occupied Territories Bill.
The Bill would ban trade between Ireland and Israel’s illegal settlements in the Occupied Palestinian Territories.
The Bill was introduced by Independent Senator Frances Black and has previously got Dáil and Seanad backing.
In recent weeks, the Taoiseach requested updated legal advice on the Bill.
Attorney General Rossa Fanning now believes the International Court of Justice (ICJ) advisory opinion gives stronger legal grounds to look again at the Bill.
The Government party leaders heard that complex legal issues still remain and many changes might be required before the Bill is enacted.
Formal written advice will be presented to the Cabinet next week and this is being taken as a signal that the Bill is now progressing.
Green Party leader Roderic O’Gorman has welcomed the latest advice from the Attorney General.
Speaking on his way into the Cabinet meeting, he said it is the view of the Green Party that Ireland would ban trade with the occupied terrirtories.
Additional reporting Carla O’Brien