Sita UK and Kerbside Calderdale held a meeting at Manchester Airport to try to reach an agreement to work together.

The talks resulted in the two sides agreeing to negotiate further. "While it is early days, we remain hopeful that we can find a way forward that is acceptable for Kerbside and us," said Sita's head of municipal development Steve Holgate.

"It has always been our intention to work with the community sector and it is pleasing to reach this point with Kerbside", he said.

Chris Haddock, a director of Kerbside, said: "There are a number of issues that require more detailed investigation but the meeting was cordial and constructive.

"We hope that future negotiations continue in the same manner and produce a satisfactory outcome not only for Kerbside and Sita but also for the people of Calderdale."

Calderdale Council's health and social care spokesman Graham Reason said the news that the two organisations were continuing to talk was encouraging.

"We hope they can find a way forward so that they can work together in the future.

"The council's main concern is in continuing to ensure that all homes in Calderdale receive a first-class waste collection service and that Calderdale becomes one of the top recyclers in the country," said Coun Reason (Con, Northowram and Shelf).

Sita took over the job of refuse collection and recycling throughout Calderdale from Focsa Services in August but Kerbside is continuing to gather recyclables from 25,000 homes between Halifax and Todmorden.

Meanwhile, Sita is in talks with a social enterprise in Bacup about setting up a service for collecting, restoring and recycling furniture and other household waste that would otherwise be trashed.