Dublin looks set to miss out on the opportunity to have a directly elected Lord Mayor, in favour of Cork.
There have been calls for Dubliners to be able to choose a mayor who could make executive decisions about how the city is run.
The Irish Independent claims a report to be presented to Cabinet will recommend Cork is prioritised as a test case for a directly elected mayor.
Green Party Leader Eamon Ryan said he is very disappointed for Dublin.
Mr Ryan said: "I think it's actually really bad news for the people of Dublin.
"We face two particular crises in housing and transport and one of the core reasons behind that is a lack of leadership, the lack of an office where they can make the call, where you can get the four councils in Dublin working together, and indeed the neighbouring councils."
Labour Senator Kevin Humphries has called today's announcement "an insult to Dublin".
Senator Humphries said: "The capital has been leading the campaign for a directly elected Mayor for decades. For the Minister to today announce that Dublin will not be the first city to have a directly elected Mayor is just insulting.
"In November 2016, 75% of citizens surveyed in Dublin were in favour of a directly elected mayor. Dublin City is in need of a Mayor who is empowered to manage our major transport and public services systems here in Dublin.
"This All-Ireland weekend I am calling on all Dublin TDs, Senators and Councillors to put on their Dublin jersey and get out to support the campaign for a directly elected Mayor for Dublin."