The health watchdog says PrEP is a "safe and highly effective" programme for people at substantial risk of contracting HIV.
A 'pre-exposure prophylaxis' programme refers to medication that can be taken by people who are HIV negative to prevent them getting the virus.
It would be used alongside services such as regular monitoring and offering advice on safer sex practices.
The draft report from HIQA has found that a PrEP programme would be cost-saving at €5.4 million over five years.
It's also believed it would prevent 173 infections in that time.
HIQA's Deputy Chief Executive Dr Máirín Ryan said: "The effectiveness of PrEP is strongly linked with taking the medication correctly, and PrEP must not be taken by individuals with an unrecognised HIV infection as drug resistance mutations may develop.
"This means that it is important that people taking part in a PrEP programme should receive advice on taking the medication appropriately and undergo frequent HIV testing.”
"PrEP programme could save money"
The Taoiseach has welcomed the findings.
Leo Varadkar suggests that increasing the availability of the programme would help to reduce the number of new cases being diagnosed.
He observed: “This report not only confirms that PrEP can help to prevent HIV amongst those who are high risk, it also shows how a PrEP programme could save money.
“The introduction of a PrEP programme, coupled with increased testing and greater awareness will help us to reduce the number of people contracting HIV.”
Health Minister Simon Harris said the draft report is a "significant step" in the introduction of a PrEP programme in Ireland this year.
HIQA is now asking for the public's views on the draft report before it provides final advice to the Health Minister.
Members of the public can gave feedback until May 28th, with full details of the public consultation available on HIQA's website.
There were 492 diagnoses of HIV notified in Ireland in 2017, HIQA says.
The agency adds that the virus remains a "significant public health concern".