A compromise may have been reached to allow Cargo Shed stallholders to continue trading after May 31.
The possible deal was hammered out in a meeting between Creative Tauranga, which operates the council-owned shed, and stallholders whose leases were being ended.
The meeting was chaired by Tauranga's deputy mayor David Stewart who described the discussions as "cordial".
Cr Stewart said Creative Tauranga was going to its board with a plan for a way forward.
Creative Tauranga's justification to terminate the leases on May 31 was because the Cargo Shed's operating model was not working and needed to change.
Cr Stewart said the meeting came up with a proposal with the potential to make both sides happy. A first step may be to extend the termination date to allow more talks.
Creative Tauranga has offered to work with stallholders as best it could while it worked through the new operating model for the Cargo Shed.
Cr Stewart said it was all about goodwill and best endeavours, but there were no promises that an agreement would be reached.
Stallholders' representative Kathy Sass declined to comment until Creative Tauranga had come back with something concrete to consider.