Cricket Australia chief James Sutherland wants an independent umpire called in if differences with the players' union can't be resolved within days.
CA is getting nervous as the pay dispute is set to drag into August, the month of a scheduled two-Test tour of Bangladesh.
"I have increasing concerns about timelines," Sutherland told reporters on Thursday on Melbourne.
"We have got a tour coming up to Bangladesh and I think it's really important this issue is resolved right now or in the short term.
"We have got a fair mechanism to do that. Best intent - and compromise on both parts will see the matter resolved."
Sutherland said arbitration was a logical step if the stalemate couldn't be broken by early next week.
Australia's cricketers could be covered by short-term contracts during arbitration, he said.
The Bangladesh tour is followed by October's ODI tour of India, ahead of the keenly anticipated home Ashes summer.
"There are a handful of issues that are unresolved that need to be worked through," Sutherland said.
"I do see a way forward. I'm optimistic that both parties getting together over the next few days can resolve the issue but time will tell.
"What we have put forward here is a good solution; it's a fair-minded solution."
Sutherland retained some hope the warring factions could reach lasting peace without arbitration.
"There is no doubt there is a bit of an impasse here," he said.
"But I believe that with positive intent and the right people in the room, we can get this sorted in the next few days.
"Failing that, we're prepared to say that we put the issues to arbitration, we accept the umpire's decision and the game goes on."
About 230 Australian cricketers have effectively been unemployed since the start of the month after the expiry of the last pay deal.
Players and their union, the Australian Cricketers' Association, scrapped an Australia A tour of South Africa.
The tour of Bangladesh is due to start on August 22 with a two-day fixture, preceded by a pre-tour camp the week after next.
