The action has led to fears of a magazine paper shortage in Europe

The paper workers' union said a deal had been agreed through the national mediator, and that it would officially vote on it on Friday.

No details of the agreement were immediately available.

The lock-out began on 18 May in a dispute centred on pay. Paper accounts for one-quarter of Finland's exports.

"The deal is done. We will decide on it officially at a meeting on Friday but both sides have accepted it," said Jari Vaananen, a negotiator for the paper workers' union.

The employers group - the Finnish Forest Industries Federation - was not initially available for comment.

Paper shortage fears

Analysts estimate that the dispute has cost Finland's paper industry 40m euros (�27m) per day in lost sales.

It has closed dozens of mills across the country and affected more than 24,000 workers.

And such is the importance of the paper industry to Finland's economy, that the government warned that the strike could cut one percentage point off the country's economic growth target.

The row began in November, when forest industry employers opted not to take part in nationwide pay talks.

The conflict then escalated and lock-outs began on 18 May when firms - including Stora Enso and UPM-Kymmene - shut out staff after weeks of union protests and wildcat strikes.