The top actors' union in Hollywood is now considering its next step after reports that it turned down a final contract offer by producers.

The Screen Actors Guild (SAG), which represents 120,000 members, released a statement late Friday saying its negotiating team is "discussion bargaining strategies" and "remains committed to continue to bargain for a fair contract."

The statement has many in Hollywood scratching their heads.

With no further talks scheduled and a take it or leave it approach by the Alliance of Motion Picture and Television Producers (AMPTP), which tabled its final offer on June 30, there's little wiggle room for SAG.

SAG presented a counteroffer during a long meeting on Thursday but to no avail as the studios and producers insisted SAG present the June 30 proposition to its members.

The news on Thursday spawned reports that negotiations were over, which SAG denies.

"Our national negotiating committee did not, as has been erroneously reported, reject the AMPTP's offer," SAG said in its statement on Friday.

"Instead, we made a comprehensive counterproposal."

But AMPTP spokesman Jesse Hiestand refuted the SAG statement: "The counterproposal to a final offer is a rejection to a final offer. It can't be anything else."

Union leaders say the offer, as it stands, just isn't good enough specifically in terms of residuals for DVD sales as well as payments for internet programming.

A negotiations update would be provided Monday, SAG said.

With files from the Associated Press