The Ministry of Health and the MAM doctors' union have reported progress in talks on a number of issues over which the MAM had threatened industrial action.
In a joint statement, the two sides said they are now close to each other's positions.
The talks have centred on government plans for public-private partnerships in the running of sections of the health sector including St Luke's and Gozo hospitals.
Minister Konrad Mizzi and parliamentary secretary Chris Fearne are leading the talks for the government, with MAM president Gordon Caruana Dingli and general secretary Martin Balzan.