The government agreed to continue to subside the shuttle until the end of the financial year after the University of Wollongong and Wollongong City Council agreed to jointly fund the shortfall.

The 2018-19 state budget is due to be handed down some time in June and it is unlikely to include a continuation of full funding for the shuttle.

Which could mean, if the deal isn’t signed off on before then that fares may be introduced to cover the shortfall.

However, a spokesman from the University of Wollongong said it expected to have the matter settled well before the government’s funding level declined.

READ MORE: UOW “kept in the dark” over Gong Shuttle fares

“The university’s offer was to take effect from July 1, 2018, and is intended to provide certainty for this service until 2021,” the spokesman said.

“The university expects to have the matter resolved well before that start date.”

The spokesman declined to address the suggestion floated by Wollongong MP Paul Scully that a sticking point in the negotiations may be because the funding offer was not enough to cover the gap.

Wollongong Lord Mayor Gordon Bradbery said he was not aware of any such issue.

“We haven’t heard anything to the contrary about that,” Cr Bradbery said.

“But until its signed off you can never really be 100 per cent sure – but that’s my understanding.”

A Transport for NSW spokesman said meetings with the university and council would take place “later this month”.

He declined to comment on whether there was any contingency plan in place if the deal was not completed before the budget was handed down.