Xplore Dundee has announced that strike action has been suspended.
About 200 workers at the firm took industrial action after refusing a pay offer, walking out on the company on Monday morning.
In a statement issued online, the bus suppliers confirmed that the strike has been suspended and services will resume as normal from Thursday.
The company said: “Following further, constructive discussions between Xplore Dundee and Unite the Union this week, we are pleased to announce that strike action has now been suspended.
“Full-frequency timetables will resume on our busiest routes with effect from Thursday 15 June.
“We also look forward to reinstating school buses in Dundee, along with services 2, 6 and 23.
“Some journeys may be subject to cancellation whilst colleagues get back out on the road on their normal duties – but we’ll work hard to keep any disruptions to a minimum.
Normal timetables running by Friday
“Our aim is to be fully back to normal timetables again by Thursday afternoon or, at the latest, Friday morning.
“As usual, we’ll keep you updated on all our channels (on our website, in the app and on digital screens in bus shelters).
“The Discover Dundee sightseeing tour and school buses for Madras College and Greyfriars Primary School will resume separately on Friday 16 June.
“The Travel Centre will also re-open for customer services on Friday 16 June. Sunday services will also be now run in full on Sunday 18 June.
“We appreciate the patience and understanding you’ve shown us whilst we’ve dealt with these challenges this week.
“As ever, our commitment is to keeping you moving.
“We look forward to having all our buses out and about again soon.”
Details of a new offer have not been revealed but union members will be balloted next week.
An Xplore spokesman said: “ We await the result of a further ballot commencing on Monday.
“In the meantime, we can now focus on delivering a full timetable across our network and are delighted that our customers across Dundee will not be further inconvenienced.”