The US and the Swiss governments have agreed to negotiate issues related to the US litigation seeking information about the banking major UBS's clients.
The latest turn to the case comes just days after Switzerland made it clear that its law does not allow UBS to disclose client information.
The US government had filed a suit against UBS demanding the banking major part with details of about 52,000 American clients, as it felt the Swiss bank was helping American citizens in tax evasion.
In a statement on Sunday, the US department of justice said the department, along with UBS and the Swiss government, have stayed the case and rescheduled the hearing on August 3.
"The stay was requested in order to provide the parties additional time to discuss a possible alternative resolution of the matter," the department said.
According to the department of justice, the parties have agreed that any alternative resolution reached would necessarily include a provision requiring UBS to provide the internal revenue service information on a significant number of individuals with UBS accounts.
"If an alternative resolution is not reached, the department of justice will continue to vigorously pursue enforcement of the summons through the court," it noted.
Meanwhile, UBS in a separate statement on Sunday welcomed both the US and Swiss government's move towards negotiation.
"This agreement has resulted in a joint motion by the US government and UBS, with the support of the Swiss government, for a stay of the litigation in Miami for 15 days in order to achieve a settlement.
"The parties and the Swiss government will present this motion for the court's approval on Monday morning," the statement noted.
Last week, Switzerland said that law of the land does not permit UBS to reveal information about account holders.
"Switzerland makes it perfectly clear that Swiss law prohibits UBS from complying with a possible order by the court in Miami to hand over the client information," The Federal department of justice and police said.
Attributing to a filing in the Miami court, where the case is progressing, the Department said the Swiss government has prepared the necessary measures to implement Swiss law.
"All the necessary measures should be taken to prevent UBS from handing over information on the 52,000 account holders demanded in the US civil proceeding," the FDJP said.
Moreover, the statement said 'if circumstances require', the FDJP would issue an order prohibiting UBS from explicitly handing over client information.
