Snapper looks set to be dumped from Auckland's $100 million public transport ticket project.
Auckland Transport's board says it will negotiate parting company with Snapper, which has failed to make its bus technology work with the new system.
There have been repeated delays to the development of the HOP integrated ticketing system which will use one card for all bus, rail and ferry trips.
Radio New Zealand News understands that Auckland Transport will now negotiate the terms of the split with the Wellington-based company.
The original decision was for French technology company Thales to build the entire system, due to begin operating in November this year.
However, Auckland Transport then decided to allow Snapper to equip its sister company, NZ Bus, in an agreement requiring the machinery to be compatible.