Letterkenny Institute of Technology could form part of a new technological university.
The IT is in advanced discussions with Dundalk IT, GMIT, Athlone IT and IT Sligo.
If approved by the Government, the Border Midlands West Technological University would create the largest higher education institution in the state with 27,000 students.
A steering group comprising the presidents and senior IT staff are directing the negotiations.
Criteria for the technological universities are due to be published in February.