Planned strikes by Arriva are off after drivers agreed to accepted a new pay offer.
Several walk-outs had taken place in recent weeks, bringing bus routes across Merseyside to a standstill with more planned in the run-up to Christmas.
But a breakthrough on Tuesday has brought an end to the bitter dispute and averted four days of strike action that were due to take place up to December 24.
Drivers had been seeking a wage of £12.10 per hour, with 1,286 voting in favour of the offer tabled by Arriva officials compared to 547 opposed.
Bus operators in Merseyside and Runcorn will also see their pay increase again next year, with that figure set to rise to £12.42 for 2018.
Phil Stone, managing director of Arriva North West said: “Throughout this dispute we have maintained that talks and compromise on both sides are the only way to find a resolution.
“This new agreement means our passengers no longer face the prospect of disruption in the run up to Christmas.
“We hold our drivers in the highest regard and this pay offer is a demonstration of our commitment to invest in our workforce.
“We apologise to our passengers for the disruption over recent weeks and are delighted we can now return to delivering the best possible service to our passengers and the local economy.”