The offer will now be put to RMT members in a referendum, with a recommendation to accept.

In last-ditch talks that began this morning, the company raised its offer on a two-year deal to 4.99 per cent this year (backdated to April 1), and RPI (February 09 figure, but currently 5 per cent) plus 0.85 per cent from April 2009.

The offer includes a minimum £1,000 salary increase for lower paid grades and apprentices, while points technicians will receive an additional increase of £3,000 in their basic salaries in addition to the 4.99 per cent in year one of the deal.

The company also offered to increase travel subsidy from home to place of work from 80 to 90 per cent from April 2009, gave a commitment to pursue with Transport for London the provision of Oyster Cards, and agreed to separate discussions on a range of other issues.

“There has been some hard negotiating going on today, and the RMT executive has agreed that the resulting new package that Tubelines has put on the table should be recommended to our members,” RMT general secretary Bob Crow said today.

“The union has therefore this evening agreed to suspend tomorrow’s strike to allow a referendum on the offer to take place by the beginning of September.

“If the deal is rejected, strike action will be put back on.

“RMT members at Tubelines are to be congratulated for the unity and commitment they have displayed during this dispute, not least in the face of hostile media coverage,” Bob Crow said.