Local Government Minister John Paul Phelan said the salary would be linked to that of a Minister of State, which currently stands at €129,854.
The Government wants to overhaul the position of Lord Mayor, transforming it from a largely ceremonial position to a role with some executive powers and budgetary control.
The current Lord Mayor is currently paid €47,925, which consists of a €30,000 top-up on their councillor’s salary.
The high salary being offered for the new role is expected to attract some ‘heavy-hitters’ from the political and business scene to run for the office.
Sitting Lord Mayor Mick Finn criticised the Government for the “piecemeal” release of information on reforming the role.
In May, the people of Cork, Limerick, and Waterford will vote on whether or not they want to establish the position of directly elected mayors. If the vote in Cork passes, the first office-holder could be elected within two years, taking up their position midway through the council’s term.