Commuters have been spared more transport havoc after the union representing tram workers reached an in-principle agreement with Yarra Trams.

In a statement on its website, the Rail, Tram and Bus Union advised its members that industrial action planned for next week had been "cancelled and withdrawn".

Trams strikes planned for next week have been cancelled. Credit:Chris Hopkins

"All members are thanked and congratulated for the solidarity shown throughout this dispute," the statement said.

"Your resolve and tenacity in all actions resulted directly in lifting the wage offer from 13 per cent to 17 per cent."