Both sides agreed to the latest deal on the table from the National Conciliator this afternoon.

The dispute, which had been over new working arrangements between the Finnish Paperworkers Union (Paperiliitto) and the Finnish Forest Industries Federation, employers' representatives, had brought the UK publishing sector close to the brink of paper shortages.

UPM's magazine publishing director Graham Fraser said the news was "brilliant."

"We managed to get through this as well with no customers being affected," he said.

An initial vote will now be taken on the proposals by the Paperiliitto board, but members should return to work on Friday 1 July.

Following the rejection by the union of two proposals on the table, the Finnish Prime Minister, Matti Vanhanen had intervened and called the two sides together earlier this week to solve their differences.

Story by Andy Scott