A short-term deal to keep Greyhound buses operating on rural Manitoba routes has been reached, the province says, but how long will it last? (Shannon Stapleton/Reuters)

A short-term deal between Greyhound Canada and the Manitoba government has been reached that will keep buses running along rural routes in the province and northwestern Ontario.

But a future reduction in service is likely, Ron Lemieux, the Manitoba infrastructure and transportation minister, said Wednesday.

In a release, Lemieux said the bus company and the province met Tuesday and agreed to continue working on the development of short-term "options" to maintain service. Specific details were not provided.

Greyhound had recently decided not sell any tickets past Nov. 2 along rural routes, which it said are unprofitable. Lemieux said the company has agreed to quash that deadline as a "gesture of good faith."

Greyhound said Sept. 3 that unless it received $15 million in government aid, it would cease passenger service in the region.

Federal Transport Minister John Baird has accused the company of trying to bully the provinces by announcing service cuts, and said the company was being "heavy-handed" in an effort to get subsidies.

Routes lose $30M a year

But Greyhound Canada spokesperson Karen Gordon said in an email to CBC News on Wednesday that the company's losses on "uneconomical" routes total $30 million a year.

She said the company is willing to shoulder half that amount for another year if there's "a show of good faith from governments."

"What we're discussing with the Manitoba government now is what the provincial share of that amount is and how we can strike an agreement through investments and service reductions to keep service going," Gordon said.

The company has not yet said exactly which routes would see a reduction in service, if any.

Lemieux indicated that Tuesday's meeting resulted in the two sides reaching at least some consensus on the future of bus service in Manitoba.

"I am confident we can come to a reasonable resolution that works for both Greyhound and the citizens of Manitoba," Lemieux said.

He said it's important the federal government also be involved in coming to an agreement with Greyhound. He recently said he would refuse to hand the company a "blank cheque."