GPMU deputy general secretary Tony Burke said agreement had been reached between the two sides after six days of talks.

Representatives from Polestar included group operations director Mike Bartlett.

Polestar confirmed negotiations had been completed, and said the recommendations would now be put forward to the Purnell chapel on 8 April.

Burke said both he and union representatives would be proposing that members vote in favour of the recommendations.

Polestar chief executive Barry Hibbert had said he would be prepared to close Purnell, if it was not restored to profitability.

The Paulton-based gravure plant, which employs around 600, had been losing 6m a year.

"Whilst there will be some job losses, we (GPMU) have managed to save the plant and safeguard employment for our members," said Burke.

No figures were given the scale of any jobs losses, which are likely to be in the press and bindery areas.

The Polestar Group has chosen Italian company Donau Carbon Siri as the supplier of solvent recovery equipment for its new gravure plant.

A decision is still to be made on the location of the site, which will either be in the UK or Belgium.

A development partner for the project will be named next week.