Both sides say a weekend mediation session between demoted police chief Alfonso Morales and the city of Milwaukee has failed to produce an agreement.
The choices are – Morales could be reinstated as chief, or receive a settlement as part of an agreement to leave his former job.
A judge has ordered the sides to hammer out a deal by July 3rd.
The city has filed an appeal against the judge’s order that would force it to reinstate Morales.
A Thursday court hearing is the next step.