Cabinet members have agreed to conduct a review of congestion at Dublin Airport, including the possibility of building a third terminal.

The airport is expected to handle 27 million passengers this year, after seeing a record 25 million in 2015.

Minister for Transport Shane Ross has also appointed Irish Aviation Authority to regulate noise levels at the airport.

"There is an overwhelming case to build a new runway and it needs to be built quickly,” he said.

"If we are to avoid lengthy delays for passengers, construction of the new runway will need to start within a few months if it is to be commissioned as planned by 2020.

"Otherwise, significant economic loss and damage to the tourism sector in particular is inevitable.

"There is no intention that there will be an economic or financial review of the project."

Mr Ross added that the "very legitimate concerns" of local residents will be taken into account, saying public consultation will be arranged.

Dublin Airport received planning permission for the €320m expansion in August 2007, but the plans were put on hold due to the recession.