The threat of travel chaos for overseas visitors to the Olympics was averted at the last minute when a planned strike by thousands of workers, including immigration officers, was called off.

The Public and Commercial Services union said the Government was planning to recruit 1100 staff for the Border Agency and passport service in response to complaints that thousands of job cuts were hitting services.

The union said news of 800 new jobs in the Border Agency and 300 in passport offices was revealed to officials during last-ditch talks and was enough to suspend strike action tomorrow, the day before the official opening of the Games.

Immigration Minister Damian Green said no concessions had been made by the Government, adding that he did not recognise the figure of 800 new jobs.

He said: "Posts are being advertised to fill gaps left by normal staff turnover."

An advert on a civil service website details hundreds of border force vacancies across the country, at salaries ranging from £21,505 to £26,079 outside London and slightly more in the capital and at Gatwick.

PCS leader Mark Serwotka said the new jobs proved the Government had made huge mistakes in shedding thousands of jobs in recent years.

The move represented major progress in the dispute, but a number of issues remained unresolved, including compulsory redundancies and caps on pay rises.

The PCS said its members had been subjected to disgraceful attacks from ministers since the strike announcement last week. The Government had been due to seek a High Court injunction in a bid to avert the strike, before the PCS announced the action was not going ahead.

The union said the legal challenge was based on a claim that 12 staff in Paris and Brussels were being involved in the dispute when they were not covered by the issues.

Mr Serwotka said: "These new jobs are a welcome step towards a recognition that the Home Office has been cracking under the strain of massive job losses, and that the answer is not more cuts, but more investment. We are pleased that with these new posts and the progress made in talks we are able to avert a strike ahead of the Olympics."

A spokeswoman for airports operator BAA said: "We welcome the decision by the PCS to call off tomorrow's strike.

"So far passengers arriving for the Olympics have had a smooth journey through Heathrow and it is great news that those arriving tomorrow can also expect a warm welcome to London and the Games."