A strike was due to take place on Friday, following an earlier stoppage on 27 June which left passengers stranded.

Now the majority of staff involved - about 400 members of the Transport and General Workers Union (T&G) - have said they are not going ahead with further industrial action tomorrow.

The move follows discussions between the union and bus company Arriva Northumbria on Wednesday evening, when a revised offer was made.

Offers rejected

Drivers, cleaners and engineers working for Arriva want a better pay offer than the 4% rise proposed by the company.

About 100 union colleagues in the RMT were also due to strike, but they are now expected to call off the action after the T&G announcement.

The RMT staff are based mainly in the Ashington areas.

Depots in north-east England at Berwick, Alnwick, Ashington, Blyth, Hexham and Jesmond, Newcastle, would have been affected by any strike.

Members of the T&G and RMT had rejected a first 3% pay rise offer and instead demanded an increase to take all drivers to £7 per hour.

A revised, two-year pay deal was then put to staff, but was also rejected.

Arriva is also in a dispute with conductors on its trains, who are asking for a pay rise close to the 18% rise given to train drivers shortly before Christmas.