The project is part of the PESCO framework where EU member states cooperate to improve the capabilities of their armed forces.
Two months ago the National Risk Assessment identified damage to undersea infrastructure as a key risk for Ireland.
This move by Government would see Ireland joining other EU countries to develop its surveillance operations and reconnaissance.
It would also result in countries sharing information and honing plans to respond to a threat at sea.
The project is led by Italy and already has seven EU member states participating in it.
It will require both Government and Dáil approval for Ireland to sign up to the project.
The Government is also set to approve a plan to participate in cyber defence exercises, which will be led by the European Defence Agency.