The Department of Health says the deal is still being finalised, but the BBC has seen a leaked document spelling out full details.

What are the details of the new deal?

Staff, ranging from nurses to ambulance staff, therapists and porters will be covered by the deal.

The only people not covered are doctors and top managers.

In addition to the 10% pay rise, new pay bands will be introduced for all staff, linked to job evaluation.

This will mean a single pay and terms and conditions structure will cover all staff, instead of the myriad of different deals which apply at the moment.

Who will benefit?

Everyone will receive the 10% pay rise under the national deal.

But those living in expensive areas will receive an even bigger pay rise.

London weighting will be replaced with new allowances, which will also apply to those living just outside the capital.

Staff in inner London will receive an additional 20% on top of their basic pay.

In addition, the deal will allow scope for higher pay for nurses - who can now become "stuck" at the top of their grade - to recognise their experience.

The agreement also allows for the NHS to give additional pay rises to those in hard-to-recruit jobs.

How will pay structures change?

There will be eight broad pay bands covering all NHS workers except doctors and top managers.

This will replace current arrangements, such as the graded pay structure for nurses.

Job evaluations will determine where each role falls within the bands.

Terms and conditions of employment, including the working week, overtime and annual leave will also be standardised, and some staff could lose out in this way.

Will everyone get the same pay rise?

No. But the agreement will include long-term, across-the-board pay deals for each profession.

On top of that, some staff could see significant pay rises because their job would be redefined.

What happens now?

Each of the unions will have to consult its members over the deal.

Subject to the consultation, the system will be introduced in 12 sites across England early next year.

It would then be rolled out across the whole of the NHS from October 2004.