Strike action, that included proposed walkouts today (6 November) and Monday 9 November, has been postponed to at least the new year to allow for fresh talks between both parties.

Robert Keitch, chief of membership and brand at the DMA, said that while common sense had prevailed for the time being, there were other hurdles yet to overcome.

"As a consequence of these strikes and the DMA campaign, we hope that people's understanding of the importance of direct mail has grown," he said. "However, it has shown that modernisation has to happen – as without it, the Royal Mail is screwed."

Last night, the interim agreement reached guarantees that modernisation would be introduced with agreed job security and improved terms and conditions for postal workers, as well as addressing other issues raised in the local disputes, according to the CWU.

It also postpones legal action the CWU had launched regarding Royal Mail's sourcing of temporary workers to cover striking workers' roles.

Dave Ward, CWU deputy general secretary, said: "The agreement ensures the imposed change that has led to the bitter local disputes will now be subject to negotiation and agreement."

The deal means that Royal Mail deliveries should be free of any interruption over Christmas.The national strike ballot and all local ballots will remain in place.

Mark Higson, managing director of Royal Mail Letters, said: "I’m delighted for our customers and our people that we’ve got back to a sensible agreement with the CWU that will allow us to deliver a great Christmas while getting on with vital talks about the long term future of Royal Mail – and allows us to drive forward with the essential modernisation of Royal Mail in the new year.

"We look forward to positive and constructive discussions on the next stage of Royal Mail’s modernisation plan, which is key to the future of the company, all those who rely on it, and to the future of the universal service."