Talks are set to continue next week after Mickey Arthur and Cricket Australia (CA) failed to reach agreement over compensation for the country's former head coach.
Arthur was sacked from his role shortly before the beginning of the Ashes series, with former Green Baggies batsman Darren Lehmann taking on the job.
The South African claims he has received no written correspondence and no payment from CA and is suing the governing body for £2.4m.
Talks aimed at resolving the situation continued for five hours in Sydney but despite the stalemate, Arthur is confident an agreement can be reached without the matter going to court.
"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," said Arthur.
"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."
Arthur has previously claimed he was discriminated against by CA because he is South African and fears his reputation and future employment prospects may have been damaged beyond repair.
Australia trail England 2-0 following defeats at Trent Bridge and Lord's going into the third Test which begins at Old Trafford on 1 August.