The Banking Inquiry has been told NOT to accept evidence from the former Anglo Irish Bank boss David Drumm.

The inquiry has this afternoon received legal advice advising it against pursuing the former Anglo CEO - while also being informed that the Director of Public Prosecutions would intervene in any plans to have him evidence evidence in person.

A final decision on pursing evidence from Drumm will be made tomorrow, but it is seen as a near-certainty that the legal advice will be followed and that a direction seeking evidence from Drumm will be withdrawn.

The advice is that receiving evidence over video, on the record, might compromise any future criminal proceedings taken against the 48-year-old.

The inquiry has separately been informed that if Mr Drumm were to travel to Ireland to give evidence in person, the DPP would intervene to stop any hearing from going ahead.

Similar interventions have already been made over plans to have other senior Anglo managers, including Drumm's predecessor Sean FitzPatrick, give evidence.

Drumm's offer had caused a major split had emerged among the committee's 11 members.

Drumm has been based in the US since quitting from Anglo in 2009, and is currently being sought by the DPP over his management of the bank.

Separate to those proceedings, the banking inquiry had issued an order compelling him to appear in person - but the order can't be enforced outside the country.

A decision to drop Drumm's invitation is now likely to be approved when the inquiry meets again in private tomorrow afternoon.

However the inquiry will also have to decide, at that point, whether a previous written statement sent by Drumm - as a precursor to any potential hearing - can be accepted as evidence and published.