The National Roads Authority has categorically denied the European Commission is to withhold any funds for the building of the Kildare bypass.
However it is understood that the commission is critical of the manner in which environmental impact studies were carried out on the project and it is to withhold elements for some of the funding.
Earlier today, Green MEP Ms Patricia McKenna told ireland.coma letter had been sent to the Department of the Environment warning the Government it is in breach of EU environmental law and that funding would be withheld from the "whole cost of the project".
A spokesperson for the NRA said however: "There is no question of the European Commission pulling funding in relation to the Kildare bypass."
While the NRA have yet to see the letter from the EC to the Dept of Environment it is understood to contain "a rap on the knuckles about procedural matters".
In the period between 1996 and 2000, two series of studies were carried out to assess the impact of the bypass. The EU is understood to believe that had the studies been done more efficiently only one series would have been required.