The Department of Transport said that it does not have the money to progress plans for a Cork to Limerick motorway.
The proposed M20 route is expected to cost between €800m and €1bn. Initial plans set the route between the two cities via Mallow and Charleville.
The Government is reportedly considering scrapping the route in favour of upgrading the N24 between Cahir and Limerick.
CEO of Limerick Chamber of Commerce, James Ring says a direct Cork to Limerick motorway is needed.
He said "Ireland needs a strong Dublin, but Dublin needs a strong region, and Cork, Limerick and Galway are dots on a map.
"on a global scale, we're non-players really. But bring the three of them together and you're starting to form a critical mass, up along the west coast of Ireland.
He finished by saying "The three cities should be working together to try and help the country, not trying to fight over the scraps off Dublin's table."
Lack of infrastructure
Meanwhile, Munster Rugby have said they're losing players because of a lack of infrastructure in the province.
Local business groups say the motorway is badly needed to re-vitalise the region.
Munster Rugby CEO Garrett Fitzgerald says poor roads are affecting ticket sales, and called on politicians to progress the M50 Project.