The Banking Inquiry has been told not to hear evidence form the former Anglo boss David Drumm by videolink.
Mr Drumm was scheduled to give evidence on Wednesday from the United States.
The Director of Public Prosecutions (DPP) has also suggested she would try and stop the Inquiry if it rejected the advice and tried to proceed.
Mr Drumm - who was CEO of Anglo Irish Bank - sent the banking inquiry a written statement, and offered to give his evidence by videolink from the United States where he now resides.
Mr Drumm is wanted here by gardaí for questioning.
The inquiry sought legal advice on hearing the evidence via videolink and its own senior counsel has advised against the move.
The DPP also advised against hearing the evidence in such a way, and it is understood will consider a court application to stop it should the inquiry reject the advice and try to proceed.
The inquiry team will meet in private tomorrow where it is expected to accept both pieces of legal advice and not proceed with a video link with David Drumm on Wednesday.
The members must also now decide whether to accept Mr Drumm's written statement as evidence.
Shane Ross, Independent TD for Dublin South, spoke to The Right Hook this evening about the latest developments.
He told George that, "what we now have is a situation where we're not going to hear Sean FitzPatrick, we're not going to hear David Drumm... it's Hamlet without the princes":
Fine Gael Senator Michael Darcy is a member of the Banking Inquiry.
He told Newstalk Lunchtime the inquiry will continue as normal without Mr Drumm's evidence.