The Sports Minister Shane Ross says the Government is 'unable to meet' the FAI's request for a bailout.
Minister Ross met delegates last night to discuss the association's poor financial state, which includes liabilities of €55 million.
He now wants to meet with the European football governing body UEFA to "intensify the search for a solution to the deep problems inflicted on the FAI".
Speaking after yesterday's meeting with the FAI delegation, he also said Government funding won't be restored to the FAI any time soon.
He observed: "We're unable to meet their request for a bailout - that was something which the Government has completely set its mind against.
"We did propose that we ourselves go and meet another player in this problem, and that's UEFA. We'll be looking to request a meeting with UEFA, who have been supporting the FAI, in the coming days.
He added: "We've decided ourselves that [the FAI] haven't complied with corporate governance... they haven't reformed properly yet... they still have at least one person who was on the old board on this board.
"They haven't appointed independent directors, and they haven't appointed an independent chief executive officer.
"On top of that they've got an enormous debt, and I think restoring funding at this stage would be quite absurd."
The Sports Minister reiterated that they're finalising a mechanism to ensure funding for grassroots football despite the ongoing freezing of FAI funds.
Meanwhile, the FAI said the 90-minute meeting in Leinster House yesterday evening was "open and honest".
Executive lead Paul Cooke described the talks as constructive.
He added: "We outlined our position as regards the current financial situation at the FAI, our ongoing governance reforms and culture change and where we go from here.
“We stressed how the immediate focus of the Board and the Association has to be on the financial restructuring necessary to safeguard jobs, the FAI’s financial future and the appointment of an Independent Chairperson and three Independent Directors."
