CONTROVERSIAL individual contracts for Queensland doctors will be scrapped and replaced with awards after the Palaszczuk Government reached an agreement with key unions.

While final details of the award are yet to be finalised it will include a 2.5 per cent pay rise each year for three years, motor vehicle allowance and improved professional development allowances for junior doctors, according to Health Minister Cameron Dick.

The new deal will cost $350 million over three years, which Mr Dick said was within the health budget.

Doctors who want to stay on individual contracts will be forced on to the award or an enterprise bargaining agreement.

Premier Annastacia Palaszczuk said it brought an end to individual contracts introduced by the Newman Government which resulted in widespread protests from doctors.

“(They’re) gone, gone, absolutely gone,” she said.

“Where there were fights there is now peace.”

Mr Dick said the new award should be in place by the end of the year.

“Everyone now transitions back into collective bargaining,” he said.

He said the in-principle agreement with key doctors unions had been reached after several months of negotiations.

The Australia Salaries Medical Officers Federation Queensland and Together Union supported this morning’s announcement.