The Government is negotiating to pay the chief executive of the Irish Trade Board, Mr Oliver Tattan, a substantial severance deal package

Mr Tattan has informed the Department of Enterprise, Trade and Employment that he plans to resign from the Trade Board and will not be taking up a position in the new enterprise development agency, Enterprise Ireland.

Mr Tatten's contract as chief executive of the Trade Board has three and half years to run. His annual salary was £65,000, but it is not clear how much he is likely to be paid to terminate it.

Mr Tattan was not available for comment yesterday, but a spokeswoman for the Trade Board said "no deal has been struck".