SYDNEY - The Transport Workers' Union and the pilots' union both have failed to reach an agreement with Australia's airline Qantas over pay and conditions and there would be binding arbitration by Fair Work Australia, Qantas said on Monday.

A Qantas spokesman told the Australian Associated Press (AAP) on Monday the union and the airline had decided it "was not possible to reach an agreement".

The matter will now go to binding arbitration, he said.

The Australian and International Pilots Association (AIPA) has accused Qantas of sabotaging the talks, saying that Qantas refused to agree to their demands on pay and conditions.

The Australian Licensed Aircraft Engineers' Association (ALAEA) said it was still in talks with the airline in Sydney.

Spokesman for the ALAEA Steve Purvinas said on Monday the union would not seek a 21-day extension, but would be in talks until about midnight.

Qantas Chief Executive Officer Alan Joyce said while Qantas preferred to resolve the dispute through negotiations, it was now time to let Fair Work Australia bring the matter to a close.

"We haven't been able to reach a new agreement with the Transport Workers Union through negotiations so we will now let the independent umpire decide," Joyce said in a statement.