NSW train commuters could be spared chaos next Monday as rail workers consider a last-ditch offer by management.
Members of the Rail, Tram and Bus Union are set to decide by lunchtime on Wednesday whether the offer is good enough to cancel a proposed 24-hour strike over pay and conditions.
RTBU NSW Secretary Alex Claassens said progress had been made after a marathon 10-hour meeting with Sydney and NSW Trains bosses on Monday spilled into Tuesday.
"Negotiations have gone a long way to addressing our concerns and those protections we have been looking for," he told reporters.
"Until I hear from my members I am not going to comment whether I think it's a good deal or not."
But the offer appears to have come too late to stave off major disruptions on Thursday, when the first round of industrial action - an indefinite ban on overtime - was planned to start.
NSW Transport Minister Andrew Constance says trains will operate to a Saturday timetable, cutting services across the city.
He has urged commuters to stay home and avoid travel during peak hours.
"It's disappointing we are at this point, I didn't want to press this button now," he told reporters.
"It is imperative that the union please call off this strike because we are now at crunch point."
Earlier, NSW Premier Gladys Berejiklian said the government was prepared to take legal action if the strike cannot be averted through negotiations.
Ms Berejilkian urged all parties to put aside their differences and do what is in the best interest of customers.
She said the state will do everything it can to prevent more than 9000 train workers stopping work next Monday.
"We do have legal recourse and we will be taking that action but of course our preference is that negotiations end in a positive way and that the strike action be averted," Ms Berejilkian told reporters.
The union is pushing for a 6 per cent pay rise and improved conditions, while the government upped its offer to 3 per cent overnight after previously holding firm on a 2.5 per cent increase.