Tram strikes planned to take place over Goose Fair are expected to be called off less than 48 hours before they are due to start following an improved pay offer.
Hundreds of workers for the NET tram network voted to strike over pay, and industrial action is planned to take place over the course of the event between September 29 and October 8.
The vote, organised by the GMB Union, came after tram operator Keolis offered a pay deal to staff which the union said represented a real-terms pay cut.
However in an update as of September 27, tram bosses say a fresh pay offer has been put to GMB members with a recommendation to accept.
Chris Wright, managing director of Nottingham Trams, said: “Following constructive talks this week, we have made further improvements to our pay offer.
“As a result, we are pleased that the GMB has put this to its members with a recommendation to accept the proposed agreement.
“We hope that we can now move to a swift resolution of the dispute, avoiding any disruption for customers.”
GMB Union represents staff working on the Nottingham Express Transit (NET) network and its members first began balloting for strike action in August.
Around 92 per cent of members including drivers, mechanics, control room and ticket office staff, backed the action after being offered a pay rise between 6.75 and nine per cent.
Another offer of eight to 10 per cent was also turned down.
It is not yet known what the new pay offer is.
Colin Pawley, a showman who has been attending the Goose Fair for almost five decades , feared the strikes could have had a huge impact on trade.
“The consequences for us could be very serious,” he said.
“The council has got all the rent, so it will not make any difference to them, it is just the showmen and women that will suffer.”
GMB was contacted for comment.