The State's immigration laws are to be overhauled following consultations with member of the public and the social partners.
It is expected that the new law will introduce residence permits and end the obligation on legal immigrants to report annually to Garda stations.
The law will cover immigration procedures for people coming to the State to work or study, and will replace the Aliens Act 1935.
The Immigration and Residence Bill will update procedures to cope with increased migration to the State, and is due to be published this year.
In preparation for the new law, the social partners will be consulted and the public will be invited to make submissions. These submissions will be considered by a new cross-departmental group on immigration.
The law will focus on legal immigration for work, study or family reunification. It will include pre-entry procedures, entry conditions and residence requirements. Immigration for asylum purposes is already covered by recent laws.
The Department of Justice, Equality and Law Reform will hire external consultants to review existing immigration legislation in EU countries and other states which traditionally attract immigrants.
An internal review of practices in the Department's immigration and citizenship division will include examining ways to streamline procedures and improve information on services.
The Minister for Justice, Equality and Law Reform, Mr O'Donoghue, said he was determined the new law would "reflect contemporary values and realities and be applied fairly, justly and humanely".
He said it was "essential that the new legislation meets the needs of Irish society and of the economy and that our immigration systems meet the highest standards internationally. The framework now being established is designed to ensure that these objectives are met."