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The Site C Dam location is seen along the Peace River in Fort St. John, B.C., on April 18, 2017.JONATHAN HAYWARD/The Canadian Press

The British Columbia government, BC Hydro and two First Nations have entered talks to avoid court action over the massive Site C hydroelectric dam.

The parties were in B.C. Supreme Court on Tuesday to set a 120-day trial that was expected to start in 2022.

However, a government news release says the West Moberly First Nations and Prophet River First Nation have agreed to enter into confidential discussions to find alternatives to legal action.

The two nations lost a bid last year to secure a court injunction that would have stopped work on the dam project because the judge said if the First Nations lost the challenge, the project would be needlessly put in disarray.

The latest figure on the cost of the dam is $10.7 billion and when complete on the Peace River in northeast B.C. it would power the equivalent of 450,000 homes a year.

The release says the parties will continue trial preparations while talks proceed.