Members of Unite employed by Arriva were due to stage a 24-hour walkout on Monday, followed by further action later in the month.
Following last-minute negotiations, the union has said, Monday’s stoppage has been suspended to allow the workers to be balloted over the offer.
Unite added that if the bus drivers, who are based at depots across south London, reject the pay offer then a 48-hour stoppage scheduled to begin on March 28 will go ahead.