Media mogul Antony Catalano denies strangling his wife or swinging a clothes iron at her head during an alleged attack at the couple's luxury apartment earlier this year, his lawyer says.
Mr Catalano, 59, made his first in-court appearance on Friday, seven months after police laid charges.
Defence barrister Dermot Dann KC said there were "grave difficulties" with elements of the police case against his client.
He said security footage from the St Kilda apartment would show Mr Catalano did not commit strangulation or attempt to strike his wife, Stefanie, with a clothes iron.
Mr Dann said Ms Catalano no longer wanted the case against her husband to proceed.
"Mr Catalano and his wife are trying to pick up the pieces and put those pieces together," he said.
Dermot Dann said Stefanie Catalano no longer wanted legal action against her husband to proceed. (ABC News)
The defence barrister said his client wanted to resolve the case. That would occur if prosecutors dropped the case, or via a plea deal.
"He hasn't shut the door to that either," Mr Dann said.
Prosecutors to continue with case against Antony Catalano
Mr Catalano's charges include assault, false imprisonment, making threats to kill and recklessly causing injury.
Prosecutors are continuing to press on with the case. Barrister Jane Warren, part of the legal team that prosecuted triple-murderer Erin Patterson, has been appointed to the case.
Ms Warren acknowledged there were "sensitive issues" at play and negotiations would continue between the parties.
Mr Catalano, who was surrounded by a large media pack as he left the court, made no comment.
The case was adjourned until December 14.
Antony Catalano made his first in-person appearance at Melbourne Magistrates' Court since being charged. (ABC News)
Mr Catalano was the former head of real estate listings company Domain and was the chair of Australian Community Media, which owns key regional newspapers.
He was stood down from ACM after charges were laid and released a public apology, admitting to problems with drugs and mental health. He also checked himself into rehab.
In the months that followed, Catalano resigned his directorship of holding companies that had stakes in ACM and Southern Cross Media. His son was appointed in his place.
Police allege he was drug-affected and wearing only his underwear when he assaulted his wife on March 13.
During a bail application, a police officer alleged Mr Catalano demanded her phone, grabbed her, and dragged her by her hair and ankles through several rooms and hallways of the apartment. He allegedly took her to a laundry area, grabbed a clothes iron and was accused of swinging it at her head with "considerable force".
According to police, Ms Catalano fled the apartment and flagged down a car to escape.
Some of the incident was captured on security cameras in the complex, police alleged.
In the months that followed, Ms Catalano urged police to drop the charges against her husband.
She was also supportive of changes to her husband's bail conditions, allowing him to live with her and travel to Byron Bay.
On Friday, a magistrate agreed to vary Mr Catalano's bail further, allowing him to live in a new Byron Bay address and travel overseas if he notified police.