First Minister Nicola Sturgeon intervened in the pay dispute between unions and council leaders, after a series of bin strikes across Scotland.

Her meetings with council chiefs and union representatives continued late into Thursday night without a deal.

The Scottish government said it had encouraged all sides to “seek a fair and sustainable settlement”.

Ms Sturgeon was trying to broker a deal to stop school and nursery closures next week and another round of strikes by bin workers.

These are due to be held in 19 councils areas from 6-13 September.

On Thursday, union sources said the talks at St Andrew’s House were positive and the discussion was moving in the right direction.

Shona Morrison, president of local government body Cosla, said discussions were still active and she was “really keen to find a solution as soon as we can”.

A Scottish government spokesperson said: “Detailed negotiations took place on Thursday afternoon and carried on late into the night.

“We are grateful to all parties and would encourage all sides to continue to seek a fair and sustainable settlement.”

Unite, the GMB and Unison had rejected an increased pay offer earlier this week.

Cosla had said it was disappointed that they turned down a deal that was at the “absolute extremes” of affordability.

The unions are seeking an agreement similar to the one made to council workers in England – which included a £1,925 flat rate pay increase.

Cosla’s £1,925 offer matched the deal for council workers in England – but only part of this payment would be consolidated into staff salaries. The rest would be given as one-off cost-of-living payments.

Unions said this meant lower-paid staff would not benefit as much as those on higher wages.

The bin strikes began in Edinburgh on 18 August after unions rejected an initial pay offer equivalent to a 3.5% increase.

The action then escalated last week when workers at a further 20 local authorities walked out despite a revised 5% offer.

This walkout ended on Thursday, with a second wave of strikes due to begin.

The Scottish government has given an additional £140m to councils to help fund a pay deal for council staff.

It has also offered a further £200m over two years to provide the cost-of-living payments to workers earning below £39,000.

Deputy First Minister John Swinney said there was no more money for further pay increases as government finances were “finite”.