A proposed deal has been agreed between the Royal Mail and union leaders on pay, pensions and other issues linked to the privatisation of the postal group.

The Communication Workers Union (CWU) held off calling strikes so talks could be held.

After "extensive" negotiations, the two sides said a proposed agreement had been reached.

A union statement said: "The proposed agreement will now be considered by the union's postal executive over the next few days and will ultimately be subject to a ballot of the union's members.

"During the ratification process, the industrial action ballot remains valid.

"Details of the proposed agreement will be made available following the conclusion of the meeting of the union's postal executive."

In a statement, Royal Mail said: "Royal Mail and the CWU have agreed that the union's ballot for industrial action remains valid. However, the CWU has confirmed that there will be no disruption through industrial action during the ratification process of the proposed agreement, including the whole of the Christmas trading period.

"The proposed agreement is also subject to approval by the Royal Mail plc board."