The offer will be made later this week by the Education Secretary, Estelle Morris, in a letter to the School Teachers' Review Body.

It is not clear how much money is being put forward, but it is hoped the deal will assure teachers of sustained improvements in their salaries.

A straightforward three-year pay deal has to take account of economic circumstances as well as the need to recruit and retain teachers

John Bangs NUT

The National Union of Teachers (NUT) said any deal would have to address teachers' workloads and the recruitment crisis, as well as economic circumstances.

The medium-term deal, starting in April 2003, is part of a general government effort to sign up public sector workers to salary agreements taking them past the next election, according to The Times.

Ms Morris's letter will reportedly be followed by similar proposals from ministers in other high-spending departments.

Deals covering more than one year would head off regular clashes with increasingly militant public sector unions over pay, while at the same time giving extra financial stability to the public services, the paper said.

In July almost a million council workers staged a one-day strike over pay.

Problems

The action resulted in schools being shut and many services being brought to a standstill.

More walk-outs are planned for August and September.

A Department of Education spokesman confirmed an offer would be made to teachers, but said it was not revealing details of the level of pay rise being proposed.

The NUT's John Bangs said the deal had to tackle all the problems facing teachers.

"A straightforward three-year pay deal has to take account of economic circumstances as well as the need to recruit and retain teachers," he said.

'Long-term solution'

"We do not reject the concept but a long-term solution to the current shortages cannot be as simple as just saying 'this is what we are going to offer over three years'.

"A solution has to present ways of dealing with the workload teachers are facing and the problems of pupil behaviour, as well as teachers' salaries, which are so out of kilter with what's available in the rest of the economy."

David Hart: Sensible "on the face of it"

David Hart, general secretary of the National Association of Head Teachers, said: "A three-year pay deal, at a time of low inflation, looks sensible on the face of it, but ultimate acceptability depends crucially on two vital issues.

"The annual percentage increases must be sufficiently attractive over a three-year term otherwise recruitment, retention and motivation will be damaged," said Mr Hart.

"Equally importantly, good school leaders and teachers must have access to performance related pay awards which are an add-on to the annual increases."

The NASUWT said teachers would need to be confident of sustained improvement in pay and conditions.

"NASUWT is not averse to considering this approach. It has been used to good effect in Scotland," said deputy general secretary Chris Keates.

"However, there it was tied to marked improvements in working conditions. NASUWT would expect no less if the strategy was extended to England and Wales."

The Association of Teachers and Lecturers gave the news a cautious welcome.

Deputy general secretary Gerald Imison said: "It is unclear how the secretary of state's plan will deal with the problem of making the teaching profession more attractive.

"Unless there is sufficient funding to deal with the severe retention problem and unless the salary levels involved are significantly improved it is difficult to see how this will really help teachers."

Earlier in the year teachers in England and Wales were given a pay rise of 3.5%. Teaching unions had called for a rise of 12.5%.