The licence fee is to be kept under plans for the future funding of RTÉ.
Ministers are close to finalising a deal with the plans set to go to Cabinet next week.
Media Minister Catherine Martin wanted the broadcaster to be fully-funded by direct taxation, while Fine Gael and Fianna Fáil wanted to keep the licence fee.
Newstalk Political Correspondent Seán Defoe told The Hard Shoulder the Government is taking a dual approach.
"What is going to happen is they're sort of splitting the difference in their different positions on it," he said.
"The licence fee is going to be kept, you are still going to legally have to pay that.
"There is also going to be money from direct taxation - multi-annual funding for RTÉ."
Licence fee and funding certainty
Seán said the new approach means RTÉ funding would be guaranteed for a number of years.
"We don't know exactly yet how many years; sources I've been speaking to this afternoon saying it's at least well into the lifetime of the next government," he said.
"You're talking probably five [years], potentially even longer, so that there will be this certainty that RTÉ, in fairness, has been calling for for years".
Seán said State funding means the national broadcaster will know "how much is coming in even if people aren't paying the full whack of the TV licence".
RTE director-general Kevin Bakhurst at the broadcaster's headquarters in Donnybrook, 10-07-2023. Image: PA Images / AlamySeán said the coalition hopes the new approach will also encourage more people to pay.
"I think the Government is hopeful that most people will get back to paying the licence fee," he said.
"There was always a section of people who didn't anyway... so they're hoping the combination of the two [will see more people paying]."
Seán said he believes direct taxation was never an option "because it's just too much money".
"It was €200m a year and I don't think most people will say that they want that €200m a year going away from something else.
"One way or another the taxpayer is paying for it, it's just how that ends up," he added.
A number of reports into governance at the State broadcaster were published earlier this year - including one which went into detail about the use of the company’s barter account.
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