The boycott followed strike action last month

Delegates at the annual conference of the Association of University Teachers (AUT) have voted to suspend the action and to ballot on an offer from the employers.

Academics had been boycotting exam and essay marking in a bitter dispute over pay and conditions. But the action has now been suspended ahead of a ballot due to take place over four weeks.

The AUT says the new offer from the employers would "produce significant additional pay increases, targeted initially at those at the lower end of the pay scales".

The Universities and Colleges Employers Association said the money had already been in place.

The breakthrough emerged last week after two days of talks chaired by the TUC general secretary, Brendan Barber, but the deal has now been approved by AUT delegates at the group's conference in Scarborough.

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

This is a win-win situation Jocelyn Prudence, university employers

During the conference debate, on the pay offer, AUT general secretary Sally Hunt told delegates: 'We have fought off attempts to increase the number of increments and attack career earnings - and we have the opportunity to make significant gains for members in the short-term if we work together to make sure the deal is implemented properly.'

The employers, represented by the UCEA, have welcomed the AUT's conference vote.

Chief Executive, Jocelyn Prudence, said: "This is a win-win-win situation.

"It's good news for students, who can be assured that their work will be assessed and their degrees not harmed by industrial action; for staff who will get their pay rise and for universities who can progress the implementation of new modern pay structures."

Welcome news

The AUT's action had been supported by the National Union of Students (NUS), although individually, students had complained to BBC News Online that their degrees were under threat because of the action.

Mandy Telford, the president of the NUS, welcomed the end of the boycott.

"NUS is delighted that the AUT has been able to secure a better deal for its members and voted so overwhelmingly to accept the new offer.

"Although there has been some disruption to students, they value being taught by well-paid contented staff. It is nobody's interests to have unhappy staff teaching our members."