Representatives of Eircom management and union negotiators have agreed proposals to avert threatened industrial action.
Under the proposals a 2% pay increase demanded by the Communication Workers Union would be backdated to May.
CWU General Secretary Steve Fitzpatrick said he was relieved it was all over and that they had arrived at this point.
Tony Olthof of Eircom said it was not a question of either side caving in but instead the resolution was reached by compromise.
Both sides will consider the proposals tomorrow.
