A fresh wave of postal strikes was dramatically called off on Thursday just hours before the latest walkouts were due to start.
Planned 24-hour national stoppages due to be held on Friday and next Monday will not go ahead after a deal was agreed to end a long-running row over jobs, pay and pensions.
Members of the Communication Workers' Union have held a series of strikes in recent months which have caused huge delays to mail deliveries.
But following several days of talks between the union leaders and the Royal Mail, an agreement was finally reached on Thursday afternoon.
Meanwhile, the union has decided not to press ahead with legal action against Royal Mail over the recruitment of agency workers following Thursday’s agreement.
Royal Mail managing director Mark Higson said he was "delighted" for customers that a "sensible agreement" had been reached which would allow deliveries to return to normal in the run-up to Christmas.
He said the agreement allowed the company to move forward with modernisation in the new year.
"We look forward to positive and constructive discussions on the next stage of Royal Mail's modernisation plan, which is key to the future of the company, all those who rely on it and to the future of the universal service.
"I am extremely grateful to Brendan Barber for the tremendous help and support he has given over the last few weeks. I would also like to thank all those who have worked so hard to minimise disruption and to keep the mail moving for our customers."
Dave Ward, the union's deputy general secretary, said he was pleased with the agreement, which had been accepted unanimously by the postal executive of the CWU.
"We can now have a period of calm where we hope we can genuinely take forward modernisation in a way that puts the union at the centre.
"Our members will now know we can deal with modernisation in a way that gives them improved job security and improved terms and conditions."
Mr Ward said the union was under no illusions about the hard work ahead and he said the dispute had been "bitter".
He went on: "It will take exceptional efforts to rebuild trust. But we will work very hard to ensure that the agreement stays on track."
Business Secretary Lord Mandelson said: "I welcome the news that the strikes have been called off. It's important that both sides now keep talking about the next phase of modernisation which is vital for the company's future.
David Frost, director-general of the British Chambers of Commerce, said: "This is very welcome news and we are glad some common sense has prevailed in the run-up to Christmas."
Last updated: 05 November 2009, 19:40
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