PETA have offered a mulesing peace deal.
The three point plan has been taken seriously by wool leaders and offers hope of an end to the four year long crisis.
Negotiations to end the mulesing dilemma could start within weeks if Australian Wool Innovation (AWI) and the Sheep and Wool Industry Taskforce decide to talk with the activists.
Despite no formal response so far from AWI, it is understood previous offers put to PETA may be revitalised in order to achieve peace.
Negotiating the future of breech clips, promoting bare breech breeding strategies and adopting various pain relief measures may be put on the table in exchange for PETA leaving the wool industry and retailers alone.
The deal could also solve the emerging welfare issues of castraton and tail docking, which are included in new codes of practice.
Speaking from the United States this week, spokesman for People for the Ethical Treament of Animals (PETA), Matt Prescott said his organisation was willing to walk away from the issue and stop harassing retailers if breech clips were shelved and bare breech breeding was more widely adopted.
Sheep and Wool Industry taskforce head Norm Blackmore said the industry was took the offer seriously.
“PETA has put a lot of resources into this campaign and has a lot of issues to put energy into.
"This may be a sign that it is looking for a way out. But I am somewhat skeptical of the deal given PETA’s behaviour in the past.”
According to AWI, up to seven million dollars has been spent developing the clip technology to date, including a biodegradable cornstarch clip.
But PETA is firmly against the clips and is now lobbying retailers against the technology.
“No retailers that we have talked to in recent months have accepted clips.
"They all recognise that breech clips still cause pain by cutting circulation off, even with pain relief this process is unnecessary. "There are more humane solutions such as early crutching and jetting and of course bare breech breeding,” Mr Prescott said.