Union representatives of Northern Ireland's 2,000 firefighters threatening to strike are in London today for talks.
The first 48-hour strike is set to begin on Tuesday, but both sides appear to have made significant progress towards a resolution.
Union official Mr Jim Barbour insisted negotiations were now entering a crucial phase. "It's a race against time," he said.
Firefighters have been demanding a near 40 per cent pay rise to bring their wages up to £30,000 sterling a year.
Union officials have refused to back the independent review of pay and conditions led by Queen's University, Belfast vice chancellor Sir George Bain that is due to report back in December.
But talks with Northern Ireland Office Minister Mr Des Browne had left Mr Barbour more encouraged that a deal could be struck. Mr Barbour was joining other delegates of the Fire Brigades Union national executive as it met ahead of a further meeting with British Deputy Prime Minister, Mr Prescott.
"It's clear there's been a significant change of heart on the part of the Government," he claimed. But he warned: "There's a lack of time to sort this out and the Government should have become involved in talks before now".