Airport security staff have been made an offer by airport operators HIAL in a bid to end the dispute which led to a 48-hour strike at Sumburgh Airport earlier this month.
It follows high-level talks between airport authority management and representatives from the Prospect union today.
HIAL say an agreement has been reached in principle to resolve the fall-out over pay and conditions.
The offer will be the subject of a ballot among security staff.
HIAL’s managing director, Inglis Lyon, said: “A revised offer was made to Prospect today which we understand will be the subject of a consultative ballot.
“Both parties have compromised and in so doing have secured some long term stability for the business. We are pleased at the progress we have made and believe that the agreement reached today delivers a balanced package of improvements to pay and conditions for security staff.”