It's understood informal discussions have taken place with several potential donors about the ambitious project.
City council officials believe there is scope to completely transform Parnell Square and other areas around the north inner city in time for the 1916 commemorations.
The Herald understands that communication has been made with well-known figures with Irish roots in a bid to attract funding.
In a statement, a spokeswoman confirmed that it is seeking funding from "philanthropic or other sources".
"Developing a cultural quarter in Parnell Square has long been an objective of Dublin City Council and is included in our development plan.
"The council believes that developing a cultural quarter there would serve as a dynamic catalyst for social and economic development in the city," the spokeswoman said.
City councillor Mannix Flynn said that the development of Parnell Square will provide a "vital boost" to the capital.
"Parnell Square is a very important part of the city, not to mention a national heritage and cultural site.
"We can't continue to allow this part of the capital to fall further into dilapidation considering the many global events that are to be celebrated in the coming years in this locality," he added.