Aer Lingus has welcomed SIPTU's withdrawal of notice of industrial action, and the removal of uncertainty for customers intending to travel next week.
The airline confirmed that it had agreed a framework for achieving cost cuts without outsourcing.
However, it warned that until these savings are verified and confirmed by the union, the outsourcing plans remain on the table.
The airline says SIPTU has indicated that it will be in a position to confirm the savings by 3 December.
The two sides have been discussing an agreement on alternatives to the company's outsourcing proposals, which would have resulted in the loss of up to 1,300 directed jobs.
SIPTU officials will consult with members and will ballot on the proposals. In the meantime, there would be no industrial action.
They refused to be drawn on the precise terms of the agreement, but acknowledged they contained significant changes for staff.
The row has threatened to trigger industrial action at the airline before Christmas.
Negotiations between management and the union resumed this afternoon to address outstanding issues.
SIPTU's notice of strike action at Aer Lingus was due to expire on Monday.
It has been negotiating with management to find ways of securing up to €50m in staff cost reductions without outsourcing to external suppliers with the loss of 1,300 direct jobs.
The talks are facilitated by Kevin Foley of the Labour Relations Commission.
Mr Foley is also supervising talks between Aer Lingus and IMPACT, which represents cabin crew and pilots.
Those talks have adjourned but will continue over the coming days on cost-cutting proposals.
A union source described the negotiations as constructive.
Click here for the text of the Aer Lingus and SIPTU statements
