The plan centres on a strip along the river bank adjacent to the North Circular Road between Shannon Bridge and Barrington’s Pier.
It is believed that a consortium which has been put together by a top developer will discuss the project at a private meeting in Limerick today.
A leading firm of Limerick auctioneers will be represented at the meeting.
One source said: “This is one of the most extraordinary projects ever drawn up in this country.”
The land in question is flooded at high tide.
But developers feel a huge dyke could secure it and enable a massive in-fill operation to be carried out to reclaim a strip along the river bank.
It is believed that the backers of the huge project want to develop luxury apartments which would be fronted by a promenade on the river.
The area is a designated conservation area, and if the project is to get approval by Limerick City Council, an environmental impact study will be necessary.
A source at Limerick City Hall, who asked not to be named, said: “The consortium have taken soundings from the council to find out what its attitude in principle would be to such a development.”
There is a huge shortage of development land within the Limerick City boundary area and reclaimed land along the Shannon would command massive prices from the building industry.
The site is also on a prime location overlooking the river and adjacent to the up-market North Circular Road.
The construction of Condell Road, linking the Ennis Road to Shannon Bridge, would also enable various access roads to be built to the reclaimed site.
The shortage of new houses in Limerick has led to people queuing for days to book when new sites open.
Auctioneers, despite the shortage, claim Limerick presents the best value in new house prices.