The City of Toronto and the union representing its inside workers have agree to extend the deadline for their contract negotiations by 24 hours.
That means they have until midnight on Saturday to reach a deal before a possible strike or lock-out.
Earlier Friday, CUPE Local 79 President Tim Maguire had told reporters that his union was still "far apart" on some key issues on the table.
Members of the union, which represents 23,100 indoor workers, include those employed at childcare centres and Toronto Community Housing.
Maguire said he did not feel pressure to rush a deal, although the union's outside counterpart reached a deal with the city early Friday.
In a brief statement to reporters Friday morning, bargaining representative Matt Alloway said he would be presenting a deal to union members.
Labour negotiations with the outdoor workers' union CUPE Local 416 continued past its midnight deadline, but the union was able to reach a tentative deal before noon.
The city's 5,400 outdoor workers, including garbage collectors, park staff and snowplow operators, were legally permitted to strike as of 12:01 a.m. Friday.
Instead, the deal will be presented to members for ratification. If members approve, it will then go before Toronto City Council. No details of the agreement have been released to the public.
During his news conference Friday, the Local 79 president said that the city's inside and outside unions have different needs. He said a major issue in the city's contract proposal is cuts to workers benefits.
Both unions have been without a contract since the end of 2015.
