The cervical screening programme could collapse if the two labs involved don't renew their contracts.
The HSE has confirmed intense negotiations are ongoing with US lab Quest and MedLab Pathology in Dublin.
Both labs are meeting the required standard according to the Scally report.
However, they have reportedly asked the HSE to indemnify them against future errors in analysing claims.
UCD Professor of Gynaecological Oncology Donal Brennan says it's crucial the contracts which are due to expire this month get renewed.
He said: "It's imperative that both contracts are renewed because, at present, we can't provide a screening programme without access to a company in these situations who actually read the smear test."