Strikes planned by thousands of rail workers, which would have caused travel chaos across the country over the next week, were called off today following last-ditch talks to resolve a pay row.

The Rail Maritime and Transport union (RMT) said it had reached a deal with Network Rail, averting a 24-hour walkout from noon on Friday and a 48-hour stoppage the following week.

The announcement followed an agreement between Network Rail and RMT's executive about the earlier implementation of a 35-hour working week for signallers.

Under the proposed deal, workers will receive a pay rise of 3.2% backdated to April, an increase of the rate of inflation plus 0.75% from April 2007, a 35-hour week from next month, an increase in travel subsidies and improved London allowances.

Welcoming the news, Network Rail chief executive John Armitt said: "This is good news for passengers and freight customers, who are no longer facing the disruption of a strike. We hope RMT members will vote to accept this deal".

The RMT will recommend the pay deal, with the 35-hour working week now starting in August, to its members in a referendum, which will close on July 28.

Some rail operators had already drawn up emergency timetables, warning passengers that services would be severely disrupted if the strike went ahead.

South West Trains is still facing four days of strikes by its train drivers in a separate row over the use of taxis taking staff to and from work on early or late shifts. Aslef has ordered its drivers working for South West Trains to strike on July 28 and 31 and on August 11 and 14.

The union has already staged a series of strikes by drivers based at Waterloo but the dispute escalated after South West Trains drafted in managers to make sure services were not affected on strike days. The union responded by ordering a strike ballot among its 900 drivers across the company.