Mr Lane took office on in November 2015 for a seven year term
The Central Bank Governor Philip Lane is to be nominated to the European Central Bank (ECB).
Finance Minister Paschal Donohoe confirmed the news on Tuesday afternoon.
The Government is to lobby for Mr Lane to become vice-president of the ECB - a role currently filled by Vítor Constâncio.
Mr Constâncio's term ends on May 31st 2018.
Mr Lane took office in November 2015 as the 11th Governor of the Central Bank of Ireland.
The appointment of Governor of the Central Bank of Ireland is made by the president for a seven year term.
Prior to this, Mr Lane was on the academic staff at Trinity College Dublin and he remains affiliated with the university.
He has chaired the Advisory Scientific Committee of the European Systemic Risk Board and was also director of the International Macroeconomics and Finance Programme at the Centre for Economic Policy Research (CEPR).
He has also acted as an academic consultant for the ECB, European Commission, International Monetary Fund (IMF), World Bank, OECD, Asian Development Bank and a number of national central banks.
In September 2016, he was appointed as chair of the ESRB High-Level Task Force on Safe Assets.
In March 2017 he was appointed as Chair of the Advisory Technical Committee (ATC) for a three-year term.
Announcing his nomination, Minister Donohoe said: "Professor Lane’s outstanding economic, financial and policy making record ideally position him to take a seat at the executive board of the European Central Bank.
"His appointment as Chair of the European Systemic Risk Board (ESRB) High-Level Task Force on Safe Assets last year, his previous position as chair of the ESRB Advisory Scientific Committee and his current position as chair of the ESRB Advisory Technical Committee, demonstrate the standing he is held in at European level.
"I said that when and if Ireland puts forward a candidate to the ECB’s executive board, they will be an exceptionally well qualified person.
"There can be no doubt that Governor Lane is such a person of calibre and recognised standing."
Additional reporting: Sean Defoe