Children as young as 14 are offering to perform sexual acts for as little as €80, according to some reports.
Gardaí confirmed yesterday they have an operation in place to track down those responsible.
A Dublin-based journalist claimed he was offered “threesome” sex for €120.
The children are reported to be operating at night in Glentworth Street and Davis Street, adjacent to Colbert Station.
A Fine Gael councillor said he was contacted by concerned local residents.
Cllr Jim Long said: “Local residents have indicated to me that they suspect that young girls were offering services. One particular young girl has been seen getting into different cars between 10pm and 11.40pm at night.”
Limerick gardaí previously broke up a number of prostitution rings operating out of apartments in Mount Kennet on the Dock Road.
In one raid mobile phones were found and phone numbers with lists of clients.
Foreign girls were found taking calls on the mobile phones and setting up appointments for clients in apartments in Mount Kennet and Harvey’s Quay. A number of men from Limerick suspected of pimping were questioned by gardaí at that time. It is believed they were running a nationwide network of brothels from Limerick.