Moving to level 3 or even 4 in Dublin is a real possibility, according to a government minister.
The National Public Health Emergency Team is reviewing the situation after 218 cases were confirmed in the capital yesterday - with 357 nationwide and 3 further deaths.
Currently Dublin is on level 2, in line with the rest of the country, with a number of additional restrictions and people advised not to leave the county.
The Tanaiste spoke to Today FM this morning, where he confirmed that the numbers in the capital were extremely worrying and that government would be making a decision on further restrictions in Dublin following a meeting of NPHET.
Mr. Varadkar also said he is 'optimistic' that a vaccine for Covid-19 would be available to the Irish public by the 'middle of next year' - as international signals from manufacturers such as Pfizer are promising at this time.
On restrictions in Maternity Hospitals the former Taoiseach confirmed that there would be 'no immediate change' to the restrictions on the number of people allowed in with an expecting mother for the time being.
Meanwhile, The National Public Health Emergency Team advised against the re-opening of pubs until there's been two weeks of stabilisation in the trajectory of the virus.
This would apply to most counties in the country given the rising number of cases over the past two weeks.
NPHET also told the government last week the same should apply for the increase to 200 in people allowed to attend sports.
In a letter dated last Thursday acting CMO Ronan Glynn said there's no guarantee more measures will not be needed nationwide in the coming days and weeks.
He also warned Dublin is on track to see at least 300 cases of COVID a day by the end of this month.
Listen to the Leo Varadkar's full chat with Dermot & Dave below.