A new deal has been struck between Wellington bus drivers and NZ Bus.

The Tramways Union met with the company yesterday where a new collective agreement was finalised after months of negotiations and a 24-hour strike.

The union will recommend the deal to drivers at a stop-work meeting on Wednesday June 23.

Tramways Union Secretary Kevin O'Sullivan said it was a good offer that he believed would be accepted.

He remained tight-lipped about the details but said they have retained their terms and conditions that were previously proposed to be scrapped.

"We did start off with an offer which basically stripped our terms and conditions."

He said this was the result of a combination of efforts from all parties including the Greater Wellington regional council.

O'Sullivan said NZ Bus had accepted funding from the council to boost salaries.

NZ Bus has been approached for comment.

Tramways Union members voted to reject the last pay offer from NZ Bus in May, which included a one-off incentive payment of $10,000 for those employed for five years or more - all other drivers would get $5,000.

The agreement also kept the provision of five weeks' annual leave for all existing staff and increased the base hourly rate for drivers with at least six months' experience to $24 per hour.