Unite has said it is recommending members accept the offer, which followed two days of talks between the parties last week (14-15 December).

If it is agreed by the members, the deal, which affects 2,500 employees across 20 mills included in the Papermaking Partnership Agreement, will be implemented from 1 February 2011.

Unite national officer Peter Ellis said: "We recognise that the current economic climate would make these tough negotiations but we are pleased to say that we were able to reach a deal, reflecting the spirit of cooperation within the paper manufacturing industry.

"This deal represents a settlement at the upper level of median pay awards in the industry. The union will ballot its members in the new year with a strong recommendation for acceptance."