Minister for Higher Education Simon Harris is currently working on plans which would see the Government pay for the mandatory hotel quarantine stay for Erasmus students.
Currently, five EU member states are on the quarantine list and there had been concerns that some of the around 500 students affected would not be able to return home due to cost.
The talks are currently at an advanced level and are due to be announced later this week, in which the government will cover the price of the stay, which costs almost €2000 for 12 days.
It's understood the cost to the government could be around €1m.
A spokesperson for Minister Harris said: "In response to the Government decision to add countries to the Mandatory Hotel Quarantine list.
"Minister Harris asked his officials to engage with the Higher Education Authority to ensure the cost of mandatory hotel quarantine for students returning to Ireland from Erasmus could be covered for students.
"Minister Harris can confirm an agreement has been reached to do this and further details will be provided over the coming days.
"It is important to note there is an expected staggering return of students with many not due to return until July and August."