Planned action from Monday to Thursday will no longer go ahead after RMT made progress in discussions with Transport for London on Sunday, the union said in a statement.

The Underground was set to be brought to an effective standstill for the first full working week of 2024 with commuters spilling over on to busier train and bus services. The union is demanding more than the 5% pay increase offered by TfL.

However, RMT called off the latest industrial strife affecting Britain’s transport network after “positive discussions” with more funding for a deal being made available.

“The negotiations on a pay deal for our London Underground members can now take place on an improved basis and mandate with significant further funding for a settlement being made available,” RMT General Secretary Mick Lynch said.

TfL confirmed that more funding to help reach a pay deal has been made available by Mayor of London Sadiq Khan. However, it said the late announcement of the strike’s suspension meant there would still be disruption to services on Monday.

Britain’s economy has been hit by a wave of industrial action since living standards were squeezed by the highest inflation in four decades.

Most pay disputes in the UK were settled last year, but some are still causing headaches for Prime Minister Rishi Sunak. Junior doctors have held mass walkouts, exacerbating long waiting times in the country’s state-run health service.

Khan welcomed the suspension of the strike he said would have caused “several days of disruption”.

“This shows what can be achieved by engaging with trade unions and transport staff rather than working against them,” he said in a post on X.