The Royal College of Nursing has canceled its 48-hour strike scheduled for England next week in order to resume negotiations with the government.
In a joint statement, both parties claimed that "intensive" negotiations had been reached.
On Wednesday, leaders of the RCN and ministers will meet.
The RCN had initially requested a pay increase that was 5% above inflation, but it has since stated that it is willing to work with the government to find a middle ground.
The strike was scheduled to begin on Wednesday at 6:00 GMT the following week.
Half of frontline services were expected to be impacted, making it the largest strike of the winter pay dispute.
Additionally, the RCN had declared that it would stop exempting crucial services like chemotherapy and critical care.
The government had resisted discussing this year's pay award, which averaged a 4 point 75 percent increase, for months.
However, the innovation occurs as the government presents its justification to the independent NHS pay review body for the pay increase that will take effect in April. They are ready to offer a pay raise of 30.5 percent, according to the submission.
One person with direct knowledge of the negotiations claimed that this created the opportunity for the pay award to be retroactively applied to this year, giving nurses and other employees who are all covered by the same contract a pay raise.
The RCN and Department of Health and Social Care released a joint statement that read, in part, "The government and RCN have agreed to enter a process of intensive talks.
"Both sides are dedicated to reaching a fair and reasonable agreement that recognizes the critical role that nurses and nursing play in the NHS, the wider economic pressures facing the UK, and the prime minister's priority to halve inflation.
"To start negotiations, the health secretary will meet with the RCN on Wednesday. During these discussions, the RCN will put an end to its strike.
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