The airline and the Air Canada Pilots Association have agreed to a 10-day negotiation with a government-appointed arbitrator.
The union represents some 3,000 pilots who have been without a collective agreement since March 31, 2011.
That, coupled with federal legislation that prevents strikes and lock-outs, have caused mounting tension at Canada's largest airline.
An illegal job action on April 13 sparked flight delays and cancellations nation-wide when a number of pilots agreed to call in sick at the same time.
That protest came after the airline threatened to reprimand union president Capt. Paul Strachan over remarks he made on CBC questioning Air Canada's safety after 2,600 maintenance workers at Aveos lost their jobs.
In March, flights were disrupted across the country when Air Canada ground crews staged a wild-cat strike to protest two of their colleagues getting suspended for clapping ironically at Labour Minister Lisa Raitt, responsible for the strike-quelling legislation.
The pilots have since launched a Charter of Rights challenge of the legislation.
Air Canada and its pilots have called for a media blackout during their last round of negotiations, refusing to speculate publicly about what a contract might look like.