The Australian and Tasmanian Governments have agreed to a short extension of time requested by the Reference Group of Signatories to enable finalisation of the Tasmanian forests negotiations.

The group requested an extension until July 23 to report to the Governments.

The Federal Minister for the Environment Tony Burke said every effort was being made to secure an agreement.

"While this has yet to be achieved, the Signatories believe a durable agreement is still possible," Mr Burke said.

"The Governments have agreed to an extension of time in recognition that there needs to be more work and analysis completed."

Deputy Premier Bryan Green said the Signatories were continuing to work towards an agreement that optimises wood supply, conservation and community outcomes.

"Significant progress has been made but the Signatories require more time. The extension was necessary to allow crucial work to be completed in order to achieve a lasting outcome," he said.

Mr Green said the extension would not impede the tabling or debate of Legislation in the Tasmanian Parliament.