Discussions have been held regarding a disputed contribution towards the construction of a new road in Inverness, the BBC has reported.
It is understood the Highland Council and Tesco exchanged "frank and very robust" views following a meeting over payments.
The supermarket giant is said to have offered £340,000 towards the costs, but that the offer was dependent on the completion of the West Link project by 2011.
The local authority has said the new link road is needed to ease travel throughout Inverness and to ease traffic congestion in city centre streets.
It is understood it could cost up to £34m to construct, with building work expected to commence in 2015.
Tesco has a store next to the proposed route and had been expected to make a developer contribution towards its costs. The initial agreement has since expired, however, with the supermarket claiming the lack of a new road has led to a loss of revenue at its store.
Speaking to BBC Radio Scotland, Highland Council Leader, Councillor Drew Hendry said: "Highland Council is very clear on its legal position. The officers are crystal clear on the fact that there should be a payment.
"We understand that Tesco have a different view.
"We have listened to what they have got to say, but we have also made a very clear case about what we believe their responsibilities are."
Tesco described the meeting as "constructive" and would "look forward to continuing discussions over the coming weeks."
(JP/CD)
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