Management and unions are locked in talks as a strike looms next week which could cripple Bradford Council services.
Computer staff will stop work on February 26 and 27 unless the Council agrees to secondment rather than transferring them to a high-powered consortium which would deliver information technology services in partnership with the authority.
This week City Hall union Unison is also in meetings with two rivals shortlisted for the partnership with Britain's fourth biggest metropolitan authority - KPMG/ATOS and IBM/ITNET.
Last month 83 of the 100 computer staff took part in a ballot with more than 90 per cent of them voting to strike.
They delayed the stoppage until the end of this month when it would cause disruption over all Council departments.
The staff have said they want to remain Council employees because they are concerned about their employment terms and conditions if they transfer.
They also fear the long term stability of a partnership.
Unison's regional officer Chris Jenkinson said talks would continue on Friday and resume at the beginning of next week.
He said: "We have talked to the Council and to the companies together and separately. The talks have been positive although there are still some issues to be resolved."
Mr Jenkinson said the question of secondment had not been sorted out but he was "cautiously optimistic".
The partnership was expected to be in place in summer but has slipped by about six weeks partly because of staff issues.
The project was spearheaded by former chief executive Ian Stewart and will be one of the biggest in Britain.
He said the Council was suffering serious problems with its ageing technology.
Council leader Councillor Margaret Eaton said: "I am pleased discussions seem to be moving forward positively.
"The Council will do all it can to avoid a dispute but we have to work within the financial restrictions which apply to councils."
l The Council is also seeking an external partner to take over the running of large numbers of public buildings.
Unions representing about 3,000 Council workers who will be affected have expressed deep concern about the proposals and commissioned independent consultants to look at them.
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