The City of Toronto and its union have agreed to extend their midnight deadline on Sunday in an effort to reach a settlement  that will end a civic strike that has paralyzed the city for the past five weeks.

CUPE Local 416, the union representing the city's outside workers, originally imposed the midnight deadline but agreed to the extension late Sunday. Officials said they would stay at the bargaining table until 1 a.m. Monday, however the new deadline came and went without an announcement.

A union representative told reporters at the hotel where the negotiations are being held that the two sides are still at the bargaining table. She said she couldn't predict how late the talks would continue..

Union president Mark Ferguson told reporters on Friday that if they were not able to reach a deal with the city before the end of the weekend, representatives would stop bargaining and join protesters on the picket line.

The ultimatum seemed to have a positive effect as several people involved in the negotiations said Sunday that talks were progressing well.

Toronto Mayor David Miller said Sunday afternoon that he felt "optimistic" and that discussions have been "very productive."

"I just hope they do lead to a settlement. It's too early to say that but I hope they do," he said.

Ferguson stopped short of calling the progress "promising' but told CTV Toronto Sunday evening that the two sides are talking adamantly.

"We'll get it done," said another union negotiator on a break from the talks, which were held at the Delta Toronto East hotel in Scarborough.

Local 79, the union representing inside workers, spent the weekend at the Sheraton hotel downtown Toronto also negotiating with the city. However, that union did not impose a deadline but a representative said their members also hope a deal is reached by the end of the weekend.

Residents of Toronto said they're eager to see the 35-day strike come to an end as the city has become a dirty dumping ground in light of garbage collection, park maintenance and other city services being frozen as part of the job action.

"I'm sick and tired of this," said one man waiting to unload bags of garbage at a temporary dump site set up by the city.

The strike has also cut daycare programs and summer camps, cancelled swimming pool supervision and ferry services to Centre Island.

People who signed up for more than 4,400 cancelled city of Toronto programs will be getting refunds, probably by the end of the month, the city announced last week.

The refunds apply to those who signed up for the programs that were to take place between June 22 and July 17.

The strike began June 22 and affects about 24,000 inside and outside workers.