GMB Union has suspended planned industrial action by refuse workers at Veolia in Sheffield.
Strike action was scheduled to take place on 15 November - with indefinite strike action from 22 November.
Industrial action will now be suspended so members can be balloted on a new pay deal put forward by the company.
Members will vote on whether to accept a two-year deal which will see a 3% increase for year one, and a one-off payment of £250 (gross) for each employee and a further 3.5% for year two.
More than 200,000 homes in Sheffield would have been affected by the industrial action should it have gone ahead.
Lee Parkinson, GMB Organiser, said:
“I will be meeting with GMB members at Veolia on Monday to put the offer to them and once we know the outcome of the ballot, I will be meeting with the company.”