The manager of a struggling food processing plant in Bathurst says a contract offer from a supermarket giant is promising.
Simplot announced in June its Bathurst facility would be shut down if productivity was not improved.
Coles already has a contract with the company, but has announced a new five year offer to increase how much it buys from Simplot by 12 per cent.
It equates to an extra two-and-a-half million kilograms of frozen vegetables.
The manager of the Bathurst plant, Silvio Tenci, says while it is early days, the offer is encouraging.
"Our commercial team need to look across it and so does our managing director, Terry O'Brien, who's in America at the moment," he said.
"So nothing concrete as yet, but it's certainly promising.
"Those volumes and where they fall would have to be determined between Coles and our commercial team.
"I can imagine that some volume would potentially fall across our vegetable plants and any volume for those plants is helpful."
Mr Tenci says a decision on the future of the plant should be made shortly.
"Those plans are being drawn up.
"They're actually currently being presented to the American board by our managing director, and I would be hoping that we would be getting some direction on the likely way forward in the next few weeks."