Relocating Cathal Brugha Barracks in Dublin and redeveloping the site for housing would cost €1 billion.
Tánaiste Micheál Martin is expected to recommend against the move at a meeting of senior ministers this morning.
Each government department has been carrying out feasibility studies on the land they hold to see if there are suitable sites for housing.
A study of Cathal Brugha Barracks has found it would cost in the region of €497 million to relocate the army facilities to a new barracks on a greenfield site.
While the Land Development Agency looked at how much it would cost to redevelop the Rathmines site for housing, estimating 1,300 homes could be built on the land at a cost of €499 million, bringing the combined costs to just shy of a €1 billion.
Taking into account the estimated costs involved and military advice, Mr Martin will recommend against relocating the Barracks.
