The National Transport Authority has announced a proposal to put 10% of Bus Éireann and Dublin Bus services out to tender to the private sector in 2016.
The NTA said this would encourage good competition and provide a satisfactory sized operation against which to benchmark existing operators.
Under the proposals, Dublin Bus and Bus Éireann would retain their existing public service contract until 2016.
In the meantime, the NTA is opening a consultation process with a view to putting 10% of existing routes in both transport companies out to tender to independent operators by 2016
However, both Bus Eireann and Dublin Bus will be entitled to bid for those routes.
The NTA said the priorities would be a high quality of service and accessibility, with value for money, while ensuring that public transport integration is maintained.
Interested parties can send in submissions until 11 October.
The Dublin Bus routes to be opened to tender include orbital and some local routes around Dublin, including the 17 from Rialto to Blackrock, the 33b from Swords to Portrane and the 111 from Dún Laoghaire to Loughlinstown.
Bus Éireann could lose all city services in Waterford, some city services in Cork, some rural routes in the southeast and certain Dublin commuter services.
NTA Chief Executive Officer Gerry Murphy said the proposals were carefully balanced to introduce competition into the bus market in a structured manner.
He said Dublin Bus and Bus Éireann would be able to plan for tendering and possible downsizing if they were unsuccessful.
The NTA move comes as the Minister for Transport Leo Varadkar expressed grave concerns over whether the ongoing dispute between Dublin Bus and unions over cost-cutting proposals can be solved.
He said if it was down to issues that could be tweaked through clarifications, then agreement could be reached. However, he said that if it were a fundamental opposition to making the savings that were necessary, then they had a big problem.
The National Bus and Rail Union said that the announcement of the NTA proposals for privatising 10% of routes while the Dublin Bus dispute was continuing was unhelpful and could not have come at a worse time.
A third-party intervention in the Dublin Bus dispute was expected to be discussed at today's Cabinet meeting.
Minister Varadkar met management at the company yesterday.
His department said contact with unions would take place in the process of third-party intervention.
A dispute over cost-cutting proposals led to a three-day strike at Dublin Bus last month.
Mr Varadkar said the issue was not on the formal agenda of today's meeting, but he expected to brief colleagues on the state of play at the company.
"There has been four or five rejections of proposals already and so I have grave concerns on whether it will be possible to do that," he warned.
"It has always been my view that employers and unions should respect the Labour Court, but they've rejected the Labour Court recommendations three times.
"So if it is down to issues that can be tweaked on clarifications then I'm sure agreement can be reached.
"But if it is a fundamental opposition to make the savings that are necessary then I think we have a big problem."
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