RTé is to save money this new year's eve by offering viewers an extended version of The All Ireland Talent Show rather than the usual 'Hogmanay'-style special.

Viewers to RTé One will welcome in the new year in the company of Gráinne Seoige, Bláthnaid Ní Chofaigh and a range of youngsters hoping to break into the big time.

An RTé spokeswoman said: "New year's eve has always been a slightly difficult thing for RTé to pull off, as it is for every other broadcaster around the world. We hope that by scheduling our new year's eve celebrations during The All Ireland Talent Show, the live broadcast will benefit from the atmosphere and excitement which comes from that programme. The 31 December edition will also be the first live show of the reality series."

Station management decided on the lighter approach, which will feature appearances from special guests, after a disastrous new year's eve special on RTé television last year.

Expecting festive cheer, viewers tuned in to find Ryan Tubridy hosting a bad-tempered discussion on the state of the nation with a panel that included property journalist Liz O'Kane.

The broadcast's most memorable moment came when an irritated Brendan O'Connor told Tubridy at one point: "I have other options, I could be at parties – in case people think I'm a loser."

This new year's eve, the television-viewing public can expect perhaps the jigging Mulkerrins Brothers, winners of last season's All Ireland Talent, as special guests on the show.

The idea of combining RTé's new year's celebrations and a first live broadcast of The All Ireland Talent Show is said to have gone down well with station management.

Earlier this year, finances were so bad at the state broadcaster that there was speculation its Christmas and new year's programming could be scaled down to the bare minimum.

However, RTé management relented on the basis that after enduring such a difficult year, Irish TV viewers deserved a good Christmas.

With this end in mind, station management is said to be delighted with two home-produced features going out over the festive period from comedian Pat Shortt.

The first, called Mattie, airing on Christmas Day, follows a hapless detective called Mattie Dwyer who has moved from his rural base to a city environment.

The second, called The Crystal Ball, again written and starring Shortt, concerns the owner of a community radio station.