The dog at the centre of a custody battle could soon be returned to his owner.

Earl Shadbolt's lawyer says a deal could be reached today to bring Willie home.

Shadbolt left the terrier-mix with a friend from church, after his home in Eastern Passage was damaged by a fire in April.

Five months later, they had a dispute over payment for the dog's care and the woman refused to return Willie unless she was paid.

She even threatened to sell Willie and the two sides appeared headed to court.

But lawyer Ritchie Wheeler now says Shadbolt has negotiated a payment, though a smaller "non-monetary" issue has yet to be figured out.