A legal wrangle involving millions of dollars in allegedly unpaid fess between Queensland's governing racing body and the state's TAB is set to go to a court hearing next year.

It had been hoped the dispute would be resolved before Christmas but the parties have failed to come to an agreement.

Racing Queensland and its offshoot Queensland Race Product Co Ltd are at loggerheads over the alleged failure of the gambling giant TattsBet to pay $126 million in fees.

The dispute centres around the interpretation of a clause of the Product and Program Agreement between TattsBet, Racing Queensland and Queensland Race Product Co Limited.

Product Co was set up in June 1999 to administer money owed to the Queensland racing industry by interstate bodies which use its race fields information.

RQ maintains TattsBet, which collects the fees for Product Co, has withheld $126 million that is rightfully owed to RQ.

TattsBet says it does not owe the money.

The parties have agreed the dispute should be resolved by a Supreme Court judge making a ruling on the disputed clause.

In the Supreme Court in Brisbane on Wednesday, Justice Philip McMurdo presided on a directions hearing in which various legal issues were resolved.

The parties will now adhere to the directions made by the judge so a full hearing can go ahead next year.

Racing Queensland chief executive Darren Condon said RQ's lawyers had told him Wednesday's hearing cleared the way for them to prepare their case.

He said he hoped the matter would be resolved as soon as possible.