A revised pay offer which could see bin strikes called off is expected to be made this afternoon, the PA news agency understands.
Council leaders met on Friday morning where it was agreed that the “additional funding” identified by Scottish ministers would be used to negotiate with trade unions.
A source confirmed to PA that councils will now begin “negotiations” later today.
Strikes could be called off from Monday after representatives from three unions discuss the offer with their local government committees.
If a revised offer is not accepted, refuse workers from 26 of Scotland’s 32 local authorities will walk out for eight days from 5am on Wednesday August 14 to 4.59am on Thursday August 22.
A previous offer of 3.2% was rejected by GMB Scotland, Unison and Unite, with the waste disruption expected to hit cities including Glasgow, and Edinburgh during its festival period.
GMB Scotland confirmed that unions have been told to expect a new offer but said members will decide if it is acceptable.
Keir Greenaway, GMB senior organiser in public services, said: “We will need to receive a revised offer from Scotland’s local authorities very soon if there is to be any chance of averting industrial action.
“Our local government committee is meeting on Monday and, if an offer is received by then, will decide if it is enough to suspend action while balloting our members or to reject it with strikes starting as planned.”
Unison Scotland local government lead David O’Connor said: “It’s very frustrating to be here, at the final hour again. We put our pay claim in at the beginning of the year.
“We welcome more money, and Unison Scotland’s local government committee will consider any revised offer as soon as we can. But we must make sure any pay deal works for everyone in local government.”
Earlier, Chris Mitchell, co-convener of GMB Scotland, said he was “hopeful” an improved offer could avert bin strikes from taking place.
However, he warned workers would not settle, telling BBC Radio Scotland’s Good Morning Scotland programme that the offer must be “credible” and be the region of 5%.
He told the radio programme: “We’re hopeful of a credible offer like we seen last year from our counterparts down south.
“If that is produced today on the table, I think we could certainly take that back to our members.”
“I don’t think we should step down for less. I think it has been a very tough eight months trying to negotiate with Cosla and the Scottish Government.
“We have given them every opportunity to try and avert any kind of strike action.”
He told the programme: “I don’t think we’re holding anybody to ransom. We’ve been trying to negotiate since January.
“They have had plenty of time to sort this crisis out and they have waited until the last minute.
“But I am hopeful and quietly confident that we get a deal this afternoon.”
Cosla has been asked for fresh comment.
Earlier, Katie Hagmann, Cosla’s resources spokeswoman, said: “We have worked quickly and constructively with Scottish Government to increase the funding available.
“The identification of this additional resource has been extremely challenging given the current financial context and has meant tough decisions in some key policy areas. We hope that an acceptable revised offer can be made as soon as possible.”