Federal Labor has given more ground on a pared-back renewable energy target to try to break a political impasse.
The government wants to slash the legislated 2020 target from 41,000 gigawatt hours to 32,000GWh while Labor is backing the clean energy industry's position of 33,500GWh.
The deadlock has stalled investment in the sector and cost jobs.
Opposition Leader Bill Shorten has now indicated Labor is prepared to move slightly if it helps to get a deal.
"If it's the last issue on the table and the government want to save face by saying 33,000 gigawatt hours as opposed to 33,500 - okay," he told ABC radio on Monday.
"This game's gone on too long."
However, it will be up to the Labor caucus to approve any deal.
Mr Shorten said he did not know whether Environment Minister Greg Hunt had been in touch recently with his opposition counterpart Mark Butler.
Comment has been sought from the government.
Major business lobby groups are backing a 33,000GWh compromise, saying it would give much needed certainty to sector.
The figure would also provide a stable bipartisan basis for investment in energy supply including renewables, conventional energy and energy dependent industry, they said in a statement.
A spokesman for Mr Hunt told AAP the minister welcomed Labor's move and would respond shortly.
Prime Minister Tony Abbott said he understood Labor had walked away from negotiations a few weeks ago.
"Frankly, the only deal worth having is a deal which keeps power prices down and which protects jobs," he told reporters in Canberra.
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