British Airways and the Unite union have reached an agreement to settle their long-running industrial dispute.

As part of the deal BA has agreed to restore travel concessions to staff who went on strike and to award some lower-paid employees top-up payments.

Both issues were at the centre of the dispute which has lasted for two years and involved 22 days of strikes.

The agreement will now be put to a ballot of about 10,000 union members.

In a statement Unite general secretary Len McCluskey said: “We always said that this dispute could only be settled by negotiation, not by confrontation or litigation. And so it has proved.

“I am particularly pleased that travel concessions will be restored,” he said.

The agreement was made at a meeting held Bedfont Football Club in Middlesex

A change of leadership on both sides may have added impetus as both sides seek to end the dispute.

Willie Walsh, who has moved on to become chief executive of British Airways parent International Airlines, has been replaced at the head of the airline Keith Williams.

In turn, Len McCluskey has been appointed general secretary of Unite.

The new leadership on both sides have been in discussions to end the dispute.

Industrial action at British Airways has so far caused travel chaos for hundreds of thousands of passengers, with the bill estimated to be £150 million.