As the negotiations between real-estate developers and labor unions appear to break down over extending a lucrative tax break, Gov. Andrew Cuomo is distancing himself from the talks.

The continuation of the tax abatement was left up in the air after state lawmakers and Cuomo agreed last year to turn the issue over to developers and construction labor groups.

At issue was whether to provide a prevailing wage component to the measure as developers and Mayor Bill de Blasio were seeking an expansion of affordable housing under the tax break.

Now, as talks enter their final stages with the measure due to expire tomorrow, Cuomo says he thinks a compromise is possible, but it’s not up to him.

“We said, ‘You get in the room and you figure it out,'” Cuomo said on WNYC’s The Brian Lehrer Show.

“They both have professed how important the program is,” Cuomo added. “They both could reach an agreement if they wanted to. There is a compromise to be found, but it’s between the real-estate industry and the labor unions.”

The decision to leave the future of 421a to the negotiations has worsened the traditionally tight political and financial alliance between real-estate developers and Senate Republicans.

Still, Cuomo said an agreement was possible, since both sides have insisted the 421a program is “desperately needed.”

“If they don’t reach a compromise, then frankly they both would have been disingenuous when they said they needed this program,” Cuomo said. “My guess is they reach a compromise and if they don’t then the program will lapse.”