The West Bengal Governor-brokered talks between the State government and the Trinamool Congress-led opposition to break the Singur deadlock ended inconclusively on Friday.
Further talks will be held at 1100 on Saturday to find a possible solution to the problem.
While not much details is forthcoming, sources pointed out that the Left Front government stuck to its stand of not returning the 400 acres of land demanded by Mamata's party.
According to sources, the government has offered a 'solution formula', by which it promised extra compensation to the farmers.
"We are heading towards a solution. The discussion is on and it will resume tomorrow," Partha Chatterjee, who led the TC delegation told reporters after the three-hour meeting.
A press statement issued by Raj Bhavan said both sides expressed their respective views and discussions were held in a "constructive spirit with the intention of providing a way out".
The TC leaders left for Singur immediately after the meeting to confer with Mamata.