Mr Burke, Deputy Premier Bryan Green and forest peace signatories emerged from all-night talks yesterday to declare an agreement had not been reached.

Mr Green said parties would work with Forestry Tasmania today to determine a balance between wood supply volumes and reserved native bushland.

Negotiations between industry and environmentalists started more than two years ago to end decades of conflict between the groups.

The government had recently imposed two deadlines on a signed agreement which groups had not been able to meet.

Mr Burke said it was now up to forest signatories to decide when they were ready to sign an agreement.

``Today we are certainly still not there but we are a hell of a lot closer than we were last night,'' Mr Burke said in Hobart yesterday.

``Whether we get there or not is not a choice for governments but a choice for the parties.''

Mr Burke said the Friday-night talks had brought the negotiations a momentum that had been lacking over the past week.

``Whether that momentum is enough to carry us through or not, I don't know,'' he said.

``We need to work on the basis that every step of the way there remains a chance that the forest wars of old could be resumed.

``Whether (the agreement) comes together or not, we'll know in the coming weeks.''

Mr Burke will spend today in Hobart in the hope that an agreement is reached.

Premier Lara Giddings was not involved in the overnight talks but had been keeping tabs on negotiations.

``I have been in touch with the Deputy Premier through this period and I'm aware there has been a long process that has already been through and likely to continue to the foreseeable future,'' Ms Giddings said.

``But we are determined to get an outcome here.''

Mr Green said the goodwill and willingness to compromise by both sides of the debate was stronger than previous forestry agreements.

``It is important that we give these people every opportunity to reach an agreement,'' he said.