Race for super junior post narrows to two
However, Tánaiste Eamon Gilmore could also appoint veteran TD Joe Costello as a minister of state.
Labour sources said such an appointment would be a reward for his role in the presidential campaign of Michael D Higgins.
Meath East TD Dominic Hannigan is also being considered for promotion.
However, sources said the race for the position, which allows the minister to attend the Cabinet but not vote, was “50/50” between Tipperary North TD Mr Kelly and Limerick City’s Ms O’Sullivan.
Roisín Shortall, another contender, is believed to have been disadvantaged because she represents a Dublin seat and the capital is seen as over-represented in the Cabinet.
The super junior post was left vacant last month after Midlands TD Willie Penrose walked out of his role as Housing Minister and the Labour Party in protest at proposals to shut down the army barracks in Mullingar.
A nod for Ms O’Sullivan, 61, would to ease concern in Labour that Mr Gilmore has not done enough to promote women.
Promotion for Mr Kelly, 36, could ruffle feathers as a number of backbenchers were angered by his elevation to ministerial rank on becoming a first time TD in the March general election.
Mr Kelly, a former senator and Munster MEP, was given responsibility for transport policy, while Ms O’Sullivan worked at the Foreign Affairs department with responsibility for overseas aid.
