AIB is looking to outsource 100 jobs in the bank's cheque-processing unit, the Irish Independent has learned.
Staff who work in the division have been told a decision on its future will be made in November, including whether the work will be contracted to an outside provider.
It is understood that a field of four potential providers who bid for a contract to process cheques for the bank has been narrowed down to two in recent days.
The bank said management have been in communication with the staff who may be affected since June, when a request for tenders was sent out to potential contractors.
Cheque-processing has become less central to the work of the bank as customers increasingly switch to digital transfers for everyday and business banking.
"AIB has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with the IBOA (union) and affected staff," the spokeswoman said.
The jobs affected are based in Dublin city centre.
If the work of the unit is outsourced, the options for staff could include redeployment to other roles at AIB, voluntary redundancy or moving to work with the new provider.
A spokesman for the IBOA union said that if outsourcing goes ahead it will engage with the bank and the successful bidder "to ensure that staff transferring are fully protected under Transfer of Undertakings Protection of Employment (TUPE) regulations".
Until a final decision is made, however, staff won't know for certain how many jobs are likely to move across to any new contractor, or on what terms.
The move will be the second significant outsourcing of work by AIB this year.
In May, the bank transferred 73 of its back-office staff to services company HCL under an outsourcing agreement. Those staff work mostly in Dublin and Belfast.
There is a widespread expectation that some further outsourcing is likely as AIB continues to rationalise.
However, the bank said there are no other tenders for outsourcing work outstanding.