Former federal MP Belinda Neal is poised to reach an agreement with the Australian Tax Office after it pursued her over a $1.4 million tax debt.

The ATO took Neal to court last year, claiming over $1.44 million in tax which the tax office said had been withheld by the Central Coast Mariners Football Club.

The ATO claimed Neal, as a former director, was liable and that she should either have paid the amount owing, appointed an administrator or made an agreement with the tax commissioner.

During a brief hearing in the NSW Supreme Court on Tuesday, Justice Ian Harrison made an order noting that "the parties have reached agreement on terms finalising the proceedings".

He then stood the matter over for further mention next month.

No further details are known.

Neal has previously claimed she was an "unpaid non-executive" director of the company and did not take part in the day-to-day management or financial administration of the company.

In an affidavit filed with the court in December last year, Neal said that during her time as a director from 2005 to 2011 she had never received any remuneration or income for her efforts.

After receiving her first Director's Penalty Notice from the ATO in 2011, Neal said she asked the board if they should be putting the company into administration.

But she said a number of board members "looked away' and avoided eye contact with her, so she left it to others to deal with the situation.

Neal said she had asked the ATO why it was "pursuing" her when her financial resources were "limited".

"I do not follow why you are not taking steps to recover the money from the Mariners," Neal said she told the ATO.

Earlier this year Neal filed an amended cross claim, seeking a declaration that the Central Coast Mariners would compensate her "for such the amount which the ATO was entitled to on judgment, plus costs".