Trade union Unite has agreed to take part in talks with Birmingham City Council and the Advisory, Conciliation and Arbitration Service (ACAS).

The ACAS talks have been arranged following the latest direct discussion between the council and Unite yesterday, which proved unsuccessful in ending the stalemate.

Unite general secretary Sharon Graham said the parties could be ‘in touching distance of a deal' but said the council was 'again guilty of saying one thing in public and another in negotiations'.

She said: ‘This flip flopping needs to be sorted prior to the ACAS negotiations next week, so the dispute can be resolved and end the uncertainty for workers and the misery for Birmingham residents.'

A council spokesperson said: ‘Negotiations are ongoing and positive. There has been agreement that there will be further discussions at the end of next week under the auspices of ACAS.'

Unite rejected a pay offer last week, insisting it would lead to pay cuts of up to £8,000, a claim disputed by the council, which said the offer was ‘fair and reasonable'.

The dispute, which began in March, has continued despite increasing concerns about public health due to rat infestations in the city.