Balfour Beatty Living Places started the five-year deal back in June 2013.
But is is understood relations between both sides have become strained following a string of complaints about the contractor’s performance.
A joint statement from Wiltshire Council and Balfour said: “Wiltshire Council and Balfour Beatty are working towards a solution for ongoing delivery of the highway maintenance contract in Wiltshire.
“Constructive discussions are on-going and we will provide an update when appropriate.”