Union officials are to put an offer, described as a "victory for common sense", to Heinz workers at the company's plant in Wigan.
About 1.3bn cans of food are made annually at the plant
A strike by 800 employees at the factory which had been planned for Wednesday may not now go ahead.
The TGWU will put the offer to members officially on Tuesday.
The union had warned there would be an immediate effect on food production. Heinz had said it was disappointed at the planned action.
Industrial action had been threatened in a dispute over a pay offer said to be worth about 4% in this financial year followed by a rate of inflation rise plus .25% next year.
Heinz said the deal had also included an increase in holidays and paternity pay to workers.
The TGWU said the new offer was still over two years but with a pay increase of 4.25% in the first year and about 3.75% in the second.
Ray McManus, senior regional industrial organiser for the T&G, said: " There is no doubt in my mind that the strength, resolution and commitment of the workforce has enabled us to reach this resolution."
About 1.3 billion cans of beans, soup and spaghetti are produced at the Greater Manchester plant every year.