Drinks giant Coca-Cola Amatil has left open the possibility of legal action against the Northern Territory's proposed cash for bottles and cans scheme.
The company has said it thought the territory's container deposit law could breach the federal Mutual Recognition Act.
But recent reports the company was working towards meeting the requirements of the NT's proposed law was greeted with praise by some local MPs, who hoped it signalled an end to any possible legal action.
Environment Minister Karl Hampton on Monday called on the the global drinks company to publicly rule out taking any legal action.
But in a statement on Tuesday the company did not completely back down.
Coca-Cola said if the NT government was unsuccessful in seeking an exemption from commonwealth legislation the NT's laws would be "open for challenge".
"At that stage industry will consider its options," Coca-Cola said.
"The beverage industry has received legal advice that the scheme legislation conflicts with commonwealth legislation, specifically the Mutual Recognition Act," it said.
South Australia, which runs a similar refund scheme to that planned for the NT, has an exemption under that Act.
The beverage maker said, however, it was not currently planning legal action against the NT.
It said it was actively engaged in trying to meet obligations under the new laws by January 3 so its products remained available.
The NT scheme is designed to promote recycling and reduce rubbish, and is due to kick off in January next year.
Under the planned laws, a 10c refund would be available for a range of empty containers such as bottles and cans bought in the NT.
Coca-Cola believes the refund will act as a new tax on their product and could see sales fall.
In its statement Coca-Cola said the beverage industry had been investing in reducing litter and improving recycling for many years,
"We share the NT government's desire to reduce litter and improve recycling rates but believe that there are better ways to do this which cost consumers less and cover a wider range of products than the proposed container deposit scheme," it said.
NT Environment Minister Karl Hampton said he was encouraged that Coca Cola seemed to be getting on board with the wishes of territorians.
"We hope they call off their legal challenge," Mr Hampton said.
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