The Portobello Plaza will be closed for at least two more years, Dublin City Council officials have told local representatives.
Hoarding was put up around the public space in December last year, which sparked outrage among locals.
A six-storey hotel is set to be built at the back of the plaza, and the space is being used for storage while the construction takes place.
The building works have not yet started at the site but tendering process was set to begin on Tuesday.
And at a private meeting for local Councillors and TDs, Council officials said the development will be completed by 2024 at the earliest.
Labour shortages in the constructions sector could delay the plans, representatives were told.
There are also plans to redevelop the Portobello Plaza after the works on the hotel are complete, which may include the street that goes around the public space being pedestrianised, or traffic being restricted at certain hours.
Local reps proposed the redeveloped space could include a small skate facility for children under the age of 10.
Reps also asked if an alternative public space in the area could be found while the construction is ongoing.
It was also agreed that the name of the space will be the Portobello Harbour.
Dublin Live have sought comment from Dublin City Council.
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