Firefighters have been holding strikes for many months

They had been due to walk out at 1800 GMT on Thursday in their long running dispute over pay.

The action threatened a huge public backlash as it was likely to coincide with military strikes in Iraq.

Local authority employers have not increased the 16% pay offer over three years but they have "loosened" some of the strings attached to the deal, according to the Fire Brigades Union (FBU).

'Significant changes'

A spokesman for Deputy Prime Minister John Prescott said the development was "very encouraging".

John Ransford, of the Local Government Association, denied the offer represented a "fudge", as it contains no precise details of what modernisation measures would be implemented.

Speaking on BBC Radio 4's Today programme, he said "fudging" the settlement would have only led to more arguments.

"Of course the service changes which come about as part of this have got to be defined and implemented, but we can now do that together," he said.

The FBU executive voted on Tuesday night to call off the strike and recommend acceptance of the deal.

But they are expected to face fierce criticism from some activists at a union conference in Brighton on Wednesday.

It is an opportunity for ending the dispute FBU official

One disgruntled member said on Tuesday night: "The executive has bottled it and there will be a blood bath at tomorrow's conference."

A union spokesman said the revised offer contained a number of "significant" changes.

The executive was suggesting that the offer be discussed at a series of meetings across the country over the next two weeks before a final vote is taken at a national conference.

The spokesman conceded the offer was similar to one already rejected by the executive but he said there were a number of big changes to the employers' plans for working practices.

"It is an opportunity for ending the dispute, although the membership will obviously have to decide," said the spokesman.

Troops on standby

The Army was expected to provide cover in the event of a strike, stretching military resources during the Iraqi conflict.

Mr Prescott's spokesman said "We welcome the fact that the union has called off the strike but we would like to see them call off the threat of industrial action completely because we still have to keep 19,000 troops on standby."

On Sunday union leaders said they were prepared to hold talks with the government in an attempt to break the stalemate.

Andy Gilchrist, general secretary of the FBU, said the government had never asked what the union's response would be to strikes taking place in the event of war.

Mr Gilchrist said: "If war really is as imminent as the government suggests we would expect them to ask for the discussions as a matter of urgency."