The workplace umpire has approved an agreement on pay and conditions struck by Qantas and the licensed engineers' union last month.

Around 1,600 licensed aircraft engineers will receive a 3 per cent pay rise and there will be changes in the rostering of extended hours, new licensing agreements and new retirement arrangements.

Fair Work Australia's endorsement of the deal marks the end of one of three arbitration battles Qantas is waging with unions amid a long-running industrial relations dispute.

The agreement will remain in effect until December 31, 2014.

Qantas chief executive Alan Joyce said it was a "relief" that the dispute had been resolved.

"This is a positive outcome that will allow Qantas to move forward with certainty and allow our customers to continue to book with confidence. The union cannot take any industrial action before 2015," Mr Joyce said.

"The determination from Fair Work Australia does not contain any of the restrictive demands that would have handed control of parts of the airline to the union, however it provides reasonable pay increases to our workers."

The airline says it is still in arbitration with members of the Australian and International Pilots Association (AIPA) and the Transport Workers' Union.

Last week, AIPA lodged its submission on a pay agreement with Qantas with the workplace umpire.

Qantas and the three unions were ordered to binding arbitration in November after they failed to resolve their disputes within the timeframe set by Fair Work Australia.