According to US newspaper the Arizona Republic, the city officials, including Chandler, Arizona mayor Boyd Dunn, met in Washington to talk with US Department of Agriculture (USDA) officials about Covance.
The FDA and USDA officials "had positive remarks about Covance, their long-term relationship with Covance and how Covance approaches the issues of drug testing," the newspaper reported Dunn as saying.
The discussions also involved information about a previous fine against Covance for violations and how those compared with other companies in the field, according to the media report.
This could let Covance breathe a sign of relief after months of controversy surrounding its development plans in Chandler.
The contract research organisation (CRO) recently completed a 50-acre land purchase near the Chandler airport in a bid to build a new medical research lab offering services for the purpose of developing new medicines to treat serious diseases, including animal testing.
The company said it chose the area because " Arizona provides a very strong economic base and proximity to the western US pharmaceutical and biotech corridor."
It also said it will be able to provide opportunities for the strong life-sciences talent pool in both the University of Arizona and Arizona State University.
While the company said the Chandler facility will conduct other research besides animal testing, including a wide range of chemical analysis, and will provide at least 400 new jobs, this hasn't reassured many residents who have been putting pressure on the council to prevent Covance from locating in the city, holding regular protest gatherings and signing petitions.
In addition, the company's plans to establish its presence in the city have prompted strong opposition from animal-rights campaigners as well as other groups worried about environmental issues. Covance, with headquarters in Princeton, New Jersey, is one of the world's largest drug development services companies with annual revenues of $1bn (€750m), global operations in 20 countries, and around 8,000 employees worldwide.