Cricket Australia will refer its lingering pay dispute with the Australian Cricketers' Association to an industrial umpire if an agreement can't be reached by next week.
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The governing body's chief executive James Sutherland issued the ultimatum and also foreshadowed short-term contracts to allow series, including the all-important Ashes, to go ahead.
Cricket Australia has presented the ACA with a new proposal to this effect.
"We have today discussed with the ACA in that regard," James Sutherland said at a media conference in Melbourne on Thursday.
"Hopefully ... by early next week we can have this situation resolved.
"I think what we have put forward is a fair-minded solution."
There had been hopes that an in-principle agreement could be reached between the governing body and the players this week, after weeks of uncertainty and bitter public argument.
But negotiations continue to flounder with the two parties unable to agree on the fundamental matter of revenue sharing.
Sutherland says independent arbitration is the logical next step unless the stalemate is resolved by early next week.
But if not, he favoured independent arbitration as the best method to come up with an agreement which would allow upcoming tours of Bangladesh and India and the home summer Ashes series to go ahead as planned.
The Australian team are due to goi into camp on August 11 ahead of the two-Test tour of Bangladesh which begins later that month.
Sutherland said CA had concerns that the urgency of the matter felt by the governing body are not being reciprocated by the ACA.
"I've had increasing concerns that not everyone is going about these negotiations with enough urgency," Sutherland said.
Sutherland added that CA had been keeping sports minister Greg Hunt up to date with discussions.
In the event of arbitration, Sutherland said players could be signed to short-term contracts as soon as that process begins.
Fairfax Media and AAP