The boycott follows strike action last month

The Association of University Teachers (AUT) said it would consider ending its boycott of exam and essay marking, after a guarantee of no "detriment" to pay structures.

It also said its members would get a wage increase of 12.2% over two years, up from the previous offer of 6.44%.

But the Universities and Colleges Employers Association said no extra money had been promised.

The AUT's policy-making group meets next week to discuss the new plan, which could then go to a full ballot.

'Sooner rather than later'

The possible resolution of an increasingly bitter dispute comes after two days of talks chaired by the TUC general secretary, Brendan Barber.

The UCEA had accused the AUT of jeopardising the graduation prospects of final-year students with its boycott.

The AUT's general secretary, Sally Hunt, said: "It's extremely unfortunate that the education of many students has been disrupted, and I hope this damaging dispute will be over sooner rather than later."

The dispute, which led to walkouts by higher education staff around the UK last month, centres around wages and proposals to end national pay-bargaining.

The two sides agreed that any settlement would "avoid detriment to the pay progression expectations" of academics.

The UCEA's chief executive, Jocelyn Prudence, said: "This is good news for students, for staff and for universities.

"The UCEA warmly welcomes this negotiated solution, and we look forward to a rapid resolution of the dispute, and the AUT formally calling off its industrial action."

The AUT's members are mainly staff in "older" universities, meaning those which gained the status before 1992.

Ms Hunt said: She added: "The deal is not perfect, limited as it is to the 'old' university sector, but the employers have made it clear that will not budge on this.

"We will consider our position, on the matter, once the ballots by our colleagues in the other academic unions have taken place."

Natfhe, which mainly represents lecturers at "new" - post-1992 - universities, has recommended that its members accept the earlier deal offered by employers.