Kerry County Council is to develop parking at The Blue Pool on the Mangerton Road.
The announcement came in response to a question by the cathaoirleach of Killarney MD, John O’Donoghue.
Council management told him that they had reached an agreement in principal with the National Parks and Wildlife Service (NPWS) to develop a parking area.
Under the proposed arrangement, the NPWS would retain ownership, while the facility would be developed and maintained by Kerry County Council.
Cathaoirleach O’Donoghue said the Blue Pool and Cloghereen Woods are getting "busier and busier" but that the "haphazard nature" of parking at the site most weekends impedes passing traffic and is "very dangerous"
He was told the council will apply for funding under the Outdoor Recreation Infrastructure Scheme (ORIS) subject to a final agreement with the NPWS, environmental assessments, and the statutory planning requirements.