Melbourne: The court case between Dutch Formula One driver Giedo van der Garde and the Sauber team was adjourned until Saturday, leaving both parties in limbo ahead of the season-opening Australian Grand Prix.
A Supreme Court judge agreed to adjourn the case on Friday but urged both parties to try and work out a solution.
"I do wish the parties to talk seriously about resolving this matter by agreement," Supreme Court Justice Clyde Croft said.
Van der Garde`s lawyer told reporters there had been "constructive discussions between the parties which are expected to continue this evening" while Sauber team boss Monisha Kaltenborn would not comment on the case.
"It`s a topic I cannot talk about," she told a news conference.
Sauber did not particpate in Friday`s first practice session but did take part in the second, with Magnus Ericsson and Felipe Nasr behind the wheels of the two cars.
A test driver for Sauber last year, Van der Garde has accused the Swiss team of reneging on a deal to let him race this season.
He won the initial case and a subsequent appeal but his lawyers launched a contempt of court action against Sauber, forcing the team to comply with the order.
Despite refusing to comment on the case, Kaltenborn did admit the issue had been hard for the team as they prepare for Sunday`s race at Albert Park.
"It`s definitely a very negative impact on the team, because the situation was for a while unclear," she said.
"We now have certain actions taken against the team, and we are acting accordingly. There`s nothing much more I can really say to that."
The 43-year-old Kaltenborn, an Indian-born lawyer, took over as Sauber principal in 2012, becoming the first female team boss in Formula One history.
Asked whether she was considering resigning from her position because of the saga, she replied: "This whole matter doesn`t have any effect on the way we work, the way the team works.
"I`ve not considered that."