Child sex charges against an Adelaide teacher and his partner may not go to trial.
The 37-year-old teacher and his 36-year-old partner cannot be identified for legal reasons.
The man was arrested in February and stood down from his position as a teacher.
He has been charged with several offences including producing and disseminating child pornography, unlawful sexual intercourse and indecent assault.
It is alleged he sexually assaulted his partner's 10-year-old daughter.
His partner is also accused of sexually assaulting the girl, as well as her three-year-old daughter.
Police allegedly found images of the woman's children engaged in various sex acts when they seized the male teacher's computer as part of an investigation into his internet activity.
Prosecutor John Wells asked the Adelaide Magistrates Court to adjourn the date to answer the charges, saying the case was likely to be resolved outside of a trial.
"Both parties have been in contact with the Crown and the matter is progressing towards a resolution," Mr Wells told the court.
He said the current charges may be withdrawn and replaced at the next hearing.
It is understood the negotiations may result in guilty pleas being entered to either downgraded or amended charges.
Both accused have been remanded in custody to answer the charges next month.
Police say the woman's children were placed in the care of another family member after the arrests and appropriate support was being offered to them.