OAKLAND -- AC Transit and its bus drivers union are making progress in contract talks but are not yet ready to announce a deal as the clock ticks toward the expiration Sunday of a 60-day no-strike period, the transit district reported Wednesday.

Negotiations were held Wednesday, and further talks are expected this week between the bus system and Amalgamated Transit Union Local 192.

"I think we're getting close to a tentative agreement, but we have some finishing touches to make," said Greg Harper, the transit board president.

The board canceled a 4 p.m. Wednesday closed session on labor negotiations because a contract package wasn't ready to be presented to the board, Harper said.

Union officials were not available for comment.

AC Transit carries some 171,000 riders per weekday.

Union leaders and district management earlier this year reached two contract deals, but both were rejected by a vote of the union rank and file.

After the union issued a strike notice, Gov. Jerry Brown issued a 60-day cooling-off period that banned any strike until midnight Sunday.

Harper said he doubts the union would strike Monday even if a final deal is not reached by Sunday. "We're making progress," he said.

AC Transit spokesman Clarence Johnson also said progress was being made, but he could not comment on the details.

Contact Denis Cuff at 925-943-8267. Follow him at Twitter.com/deniscuff.