Balfour Beatty could lose its £150 million highways maintenance contract with Wiltshire Council.
The five-year deal, which commenced in June 2013, covers highway maintenance, grass cutting, grounds maintenance, litter collection and street lighting as well as dealing with winter weather, drainage and bridges.
According to reports, Balfour Beatty Living Places has been criticised about its performance, and the deal could now finish three years early.
In a joint statement, Balfour Beatty and Wiltshire Council said: “Wiltshire Council and Balfour Beatty are working towards a solution for ongoing delivery of the highway maintenance contract in Wiltshire.
“Constructive discussions are ongoing and we will provide an update when appropriate.”