DUBLIN City University has been selected as the preferred bidder of the 170-year-old All Hallows College.
The Catholic institution was put up for sale after management announced it would need a major cash injection to remain in operation.
The 16-acre campus in Drumcondra initially had a price tag of €9.5m.
However, it is understood that the deal being considered could be worth more than that.
DCU was among ten interested parties to make provisional offers to the college and was chosen as the preferred bidder last month.
All Hallows is now set to enter further discussions with DCU before a final deal can be agreed.
If those discussions go well, it is thought a formal announcement could be made next month.
DCU has had a close association with All Hallows in recent years and has been accrediting its degrees since 2008.
It is understood that any agreement would not be purely based on cash and that a sizeable amount would relate to the ongoing provision of services to students studying at All Hallows.
All Hallows is currently winding down its operations and did not take in any new students this year.
The last of its current crop of students are due to finish their courses in August 2017.
DCU declined to comment when contacted last night.
A spokeswoman for All Hallows said a preferred bidder had been identified, but declined to confirm who it was, saying the process was confidential.