The two sides bargained for 21 hours but went home Tuesday morning without a contract to cover Portland public school teachers.
The president of the Portland Association of Teachers, Gwen Sullivan, told The Oregonian a deal was close, and the bargainers would be in touch later this week.
Spokesman Robb Cowie said school district officials were also disappointed they couldn't reach a deal but they plan to send a formal proposal to the union soon.
Although both sides have prepared for a walkout, neither has taken final steps that would lead to one. Teachers would have to gather their members for a vote before giving ten days' notice to the district.
Among the disagreements are health insurance and a limit on workload.