Negotiations have been ongoing for some time between Nottingham Express Transit (NET) bosses and the GMB union, which represents drivers and other workers on the network.
A pay deal couldn’t be reached earlier in the month and all services were suspended on the line on Saturday, November 6.
And a second day of industrial action was due to take place with control-room workers and technicians joining drivers in walking out on strike after a three per cent pay rise for last year and a three per cent rise for this year was rejected.
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However, this has now been called off and trams will run as normal.
In a statement on it’s website an NET spokesman said: “We welcome the GMB’s decision to call off its planned strike action on Tuesday, November 23 and hope that its members will now accept our improved pay offer of 11 per cent by June 2022.
“This proposed agreement represents a significant investment in the NET team as we welcome customers back following the coronavirus pandemic, and is a recognition of all the hard work of our colleagues.
"Over the next few days, we will be communicating details of the offer with members of the team and are ready to answer any further questions they may have.”