Extensive talks have taken place near Glasgow

The settlement was reached following extensive talks near Glasgow and will now be put to CalMac employees for approval.

Unions and ferry managers hope it could bring an end to the dispute which had led to a ballot among staff for strike action.

A joint statement issued by Caledonian MacBrayne, RMT Western Isles and Clyde liaison officers confirmed that a deal had been reached.

It said: "Representatives from Caledonian MacBrayne and RMT have met to discuss the present situation and both parties are satisfied that progress has been made and that a proposed settlement has been agreed in principle.

"The details have still to be discussed with RMT members and it would be inappropriate at this stage to expand on these details."

The contents of the agreed deal are unknown but CalMac had tabled a proposal on Monday which would give staff a 3% pay rise this year and an increase linked to inflation next year.

It also pledged an extra 1.5% in both years if CalMac meets targets on punctuality and achieves cost efficiencies.

Ferry crews had been balloted on the possibility of strike action

The RMT had began the ballot of 450 members last week with a view to taking strike action by the end of August if the issue was not settled.

The company's original offer of 2.5%, with an additional 1% based on performance-related pay, had been rejected by the union.

CalMac's director of human resources Alasdair MacInnes said: "Throughout these discussions, Caledonian MacBrayne has sought to achieve an outcome which is in the best interests of our customers, our staff and our long-term future."

He said the company had made the best possible offer under the public sector pay guidelines.

Negotiation overhaul

Meanwhile, there have been calls for future pay talks between workers and management at CalMac to be restructured in a bid to avoid future strike action.

Western Isles MSP Alasdair Morrison said island economies would continue to suffer without an overhaul of the way both parties negotiate.

He wants Scottish Transport Minister Nicol Stephen to convene a meeting between unions and the company to discuss the proposal.

Robert Samson, the secretary of the CalMac users committee, wants to go further and see a no-strike agreement struck between the company and RMT.