Earthquake Recovery Minister Gerry Brownlee and Christchurch's mayor say they have had a constructive meeting and are on the same page regarding the future of residential development.
Mr Brownlee had threatened to step in to sign off a residential development plan for the quake-hit city after the council failed to do so.
On Thursday, the council postponed a vote on the Government's Land Use Recovery Plan that would allow more buildings on existing sections in urban areas.
Mr Brownlee said he was deeply disappointed with the council's lack of action, and that if a meeting on Friday did not lead to some resolution, he would have no alternative but to approve the plan without the council's endorsement.
The minister said if there is to be any chance of containing house prices, more land must be made available and quickly.
Mr Brownlee, mayor Lianne Dalziel and councillors held a 90-minute meeting in private on Friday morning.
Ms Dalziel said it was constructive and a way forward on the council adopting the plan was discussed. She said the council is very mindful of the need for the wider community to be involved in such decisions.
Mr Brownlee said officials will work on finalising a position for the council to consider at its meeting next Thursday, and the Cabinet will consider the document the following Monday.
PM defends minister
The Prime Minister on Friday defended the pace of the rebuild, saying Gerry Brownlee is doing a stunning job in a complex situation.
John Key dismissed a bench plaque outside a popular cafe that takes a shot at the minister. It says: "Dedicated to the memory of Gerry Brownlee, who hates Christchurch and everyone in it."
Mr Key said the plaque's sentiment does not correspond with how hard Mr Brownlee works and the progress made.
"It's just bizarre, ridiculous and crazy, isn't it? At the end of the day, the guy's working from what I can see 23-and-a-half hours a day, essentially largely on Christchurch. It's very complex, it's just not straightforward."
Mr Key said it is expected that Mr Brownlee will butt heads from time to time, but the feedback he gets is that people think the minister is doing a good job.
'Changes needed'
On Thursday, council finance committee chairman Raf Manji said amendments were needed to Gerry Brownlee's plan and it should be included in the district plan review in 2014 so local people can have a say.
"Then at least they will feel like they were consulted rather than waking up one morning and finding out that all kinds of things can be built across from their backyard."
Mike Coleman advocates for residents in the hard-hit eastern suburbs and was pleased the sign-off had been delayed.
"It looks like, if it goes through, property developers and others can intensify surburbia anywhere across Christchurch without any resource consent."
Mr Coleman said the change would take away people's power and is totally inappropriate.