City and state leaders have agreed to extend for 30 days the negotiations over the fate of the Dorothea Dix property, a 306-acre stretch of land just outside of downtown that Raleigh leaders would like to turn into a destination park.

In order to cool down controversy over a disputed land deal between former Gov. Bev Perdue, a Democrat, and city leaders, Republican Gov. Pat McCrory and the city inked a "standstill agreement" last year. That agreement said the two sides would hold off on legal hostilities while they tried to reach a new deal over the land.

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The two sides have since traded proposals but have not reached a deal. The standstill agreement was due to expire on Sunday.

"We are still talking and working stuff out," said Raleigh Mayor Nancy McFarlane.

She said the negotiations were ongoing and heading toward an agreement.

"I think we'll wrap it up fine," she said. 

To give both sides more time to talk and reach an agreement, McFarlane said, city and state leaders have agreed to a 30-day extension. It will now expire on June 30. 

A spokesman with the state Department of Administration confirmed that Secretary Bill Daughtridge signed the 30-day extension.