Network Rail staff who are members of the Rail Maritime and Transport Union were due to walk out on Sunday evening.

After talks between the RMT executive and local representatives, the union is recommending rejection of the deal, which could lead to more strike dates.

A proposed strike for Tuesday this week was also cancelled.

'Best deal'

The dispute began over an original pay offer to take effect over three years.

Union officials said that would have given workers only a rise equal to the rate of inflation in the final two years.

The RMT executive initially recommended acceptance the revised deal, for a rise to take effect over one year and nine months, which general secretary Bob Crow described as "probably the best in the industry this year".

But local union representatives disagreed, saying they wanted to recommend rejecting the deal.

The result of the referendum of union members will be known next Thursday.

Network Rail chief executive John Armitt said: "We are disappointed that the RMT representatives have decided not to support the pay deal which the trade union and Network Rail negotiated last week.

"We are dismayed that they will now encourage members to vote against the deal, continuing the dispute and the threat of strike action.

"We believe that the deal, our fourth compromise offer, is a generous one which includes everything the RMT's executive asked for."

Tuesday's proposed strike would have coincided with England's World Cup match against Sweden and Sunday's action would have been on the same day as the team's second round match against Ecuador, which kicks off at 1600 BST.

As many as 5,000 signal workers and operational staff would have been involved in the strike.