Eleven European countries - including major holiday destinations like Italy and Greece - could be eligible to make the 'green list' of countries even as ministers continue to warn against non-essential foreign travel.
It comes as the Government has been accused of causing confusion, with mixed messages over plans for changes to Covid-19 restrictions on international travel - the announcement of which is being delayed.
The Government plans to publish a 'green list' of countries where rates of new coronavirus cases are similar to or lower than Ireland.
People travelling from those countries will not be required to quarantine for 14 days upon arrival in Ireland.
Insurance Ireland last night advised anyone planning on booking a holiday to a green-list country to check with their insurer first to see if they are covered. It said: "A green list does not equate to a relaxation of the non-essential travel policy.
"Government advice still remains that only essential travel should be undertaken and we await further clarity on any change to this position."
The latest figures from the European Centre for Disease Prevention and Control (ECDC) show there are 11 countries that currently have lower rates of Covid-19 cases than the 4.9 people per 100,000 in Ireland.
They are Italy, Greece, Slovakia, Cyprus, Latvia, Lithuania, Norway, Estonia, Hungary, Finland and Malta.
Should the green list include countries with slightly higher rates of cases, then places like Germany, Netherlands and Denmark could make the cut too.
Government sources last night said decisions on the green list were still being finalised and will "come down to the wire".
But a series of ministers who took to the airwaves yesterday, including Dara Calleary and Michael McGrath, strongly signalled that the official advice will remain not to travel for non-essential purposes.
Public Health expert Professor Gabriel Scally said the situation was "confusing".
He told RTÉ Radio: "I can understand, there is pressure from the airline industry, from international tourist interests to open things up. But I would prefer to take the safe road that keeps the virus at bay and keeps it out of the country."
Sinn Féin TD Louise O'Reilly claimed it was "absolutely unacceptable" that on the one hand the Government was saying that no non-essential travel should be undertaken, while on the other it was publishing a green list.
She separately criticised proposals for a 'staycation subsidy' set to be included in the Government's July stimulus package to allow families to reclaim a portion of their hotel or restaurant bill.
She told RTÉ's 'The Week in Politics' it would "disproportionately benefit people who have money in the back pocket and who can go out and spend" over people who don't. She argued that a voucher scheme as proposed by Sinn Féin would "benefit everybody".
Labour TD Duncan Smith said the clear public health advice was still to avoid travel but he suggested "many people will take the publication of the list as permission to travel to those locations".
He said the matter needed to be quickly clarified.
Transport Minister Eamon Ryan rejected suggestions that the green list represented a list of overseas holiday destinations.
He said the recommendation was for people to holiday at home this summer and autumn. He also disagreed that there were mixed messages on the issue.