The banking inquiry's own legal team has advised it not to hear evidence from former Anglo Irish Bank chief executive David Drumm by video link from the United States.

The Director of Public Prosecutions has also informed the committee that she is highly concerned and would make an application to stop the inquiry proceeding with Mr Drumm's evidence if necessary.

The DPP noted that no decision has yet been made by the committee on the offer by Mr Drumm.

Mr Drumm, who is wanted by gardaí for questioning, has refused to appear before the committee in person.

However, he had offered to give evidence to the banking inquiry via video link.

He has been pencilled in to appear at the inquiry on Wednesday.

Meanwhile, Independent TD Shane Ross has said the inquiry has become a political theatre and a political spat.

He said the offer by Mr Drumm to give evidence via video link is a wickedly clever and devious move.

Speaking on RTÉ's News At One, Mr Ross described it as Mr Drumm putting his two fingers up at the committee.

He said the situation with Mr Drumm is serious and said he may have the last laugh from his safe sanctuary in the US.

It is inconceivable that Mr Drumm, when he made the offer to appear before video link, did not foresee the immense difficulties that would create, Mr Ross said.

Mr Ross said the work of the committee is deteriorating very fast.

Last week it turned into an opening gambit for the general election, he said, when Taoiseach Enda Kenny appeared before the inquiry.

Drumm's offer of video link evidence divided committee

Michael McGrath of Fianna Fáil said if the video evidence went ahead, he would not attend the session irrespective of the consequences for him personally.

Eoghan Murphy of Fine Gael said he would not participate in such an interview to protect the integrity of the inquiry.

Minister for Health Leo Varadkar said he believes Mr Drumm should come back to Ireland and give evidence as he has been asked to do.

He said it was up to the committee to decide which was more important - "hearing his evidence or facilitating him not to return home, and to give evidence in a way that people who are not resisting extradition do".

Minister for Jobs, Enterprise and Innovation Richard Bruton has said the committee would make the best decision on the matter in the public interest.