Mickey Arthur and Cricket Australia have failed to reach agreement after a lengthy mediation hearing on Wednesday - but the sacked coach remains confident of reaching an out-of-court settlement with his former employer.
Arthur was sacked by CA and replaced by Darren Lehmann last month, on the eve of the Ashes Series in England.
The South African, who claims he has received no written correspondence and no payment from CA since his shock sacking, is suing the governing body for 4million Australian dollars.
Lawyers from both sides thrashed out the issues surrounding his dismissal for more than five hours in Sydney on Wednesday, with talks scheduled to resume next week.
"Although we didn't come to an outcome today I'm pretty confident there was enough good will in the room to continue talks next week," Arthur said.
"As I said earlier all we want is a fair and reasonable outcome and I'm pretty sure that we'll achieve that next week."
Asked if any compromise had been reached on Wednesday, Arthur replied: "No it was just talks today. We just spoke today and as I said I'm confident there was enough goodwill for us to get a fair outcome next week."
Arthur has previously claimed he was discriminated against because of his South African heritage and has said his reputation and future employment prospects may have been damaged beyond repair.
He believes he was left with no option other than to take legal action after confidential details of his case were leaked to the media on Sunday.
Since Arthur's sacking, the Australian team battled to a dramatic 14-run loss to England in the first Test at Trent Bridge before being hammered to the tune of 347 runs in the second test at Lord's.