CLEVELAND, Tenn. -- Last week was the deadline for officials of Cleveland or Bradley County to notify the other they are opting out of any future fire protection contract.

Instead, City Manager Janice Casteel and County Mayor D. Gary Davis are negotiating a new city-county agreement.

"I feel like we are making progress," Mr. Davis said. "We met just last Thursday, and I believe we may have an agreement in the near future."

"We have been discussing several options," Ms. Casteel said.

The current contract, in which the county pays the city $1.8 million annually to provide Cleveland Fire Department service to county subdivision areas around the city limits, expires June 30, 2010. The Bradley County Fire and Rescue Department includes a growing number of paid professional firefighters, with a second station opening soon and a force of volunteers to serve rural areas. The contract called for either side to notify the other a year in advance if there are to be no further contracts.

City and county officials started this year talking about three possibilities: no future contracts with each fire department going its separate way, a merger of the two or a new contract.

City firefighters held a town hall meeting last week during which they spoke against a merger.

City Councilman Bill Estes agreed, saying the city would "give up far more than we would benefit with a merger."

The current contract was for five years ending in 2010. A new contract is likely to be shorter, city and county leaders have said, giving the county time to add more firefighters and equipment before going full time on its own and giving the city time to find alternative funding sources for the $1.8 million.

"I wanted a 10-year contract to give us some planning time," Ms. Casteel said. But she said the likely outcome of the current negotiations will be a much shorter time.

The county's new fire station, on Tasso Lane, passed its final walk-through inspection on June 16, Mr. Davis said.

County Engineer Sandra Knight checked the building to ensure it met specifications.

Mr. Davis said County Fire Chief Dewey Woody has been given the go-ahead to sign off on the occupancy permit, allowing firefighters to move into the 5,476-square-foot building. Mr. Davis said the new station brings the county's number of full-time firefighters to 27.

Cleveland operates five stations with 93 department personnel.

Chief Woody said the new station will be staffed around the clock.