A deal has been struck between the Department of Justice and gardaí as part of a dispute over pay.

It is hoped the agreement will avert the threat of any potential strike action.

In July, the Garda Representative Association (GRA) announced it was withdrawing co-operation from the Department of Justice's 'transformation agenda' as part of its dispute over pay.

It followed the Government's move to impose a freeze on increments because the GRA had rejected the Lansdowne Road Agreement on public sector pay.

After months of negotiations, a Department of Justice spokesman has confirmed a deal was reached on Friday night.

It is understood the agreement will see the return of pay increments - while a €4,000 rent allowance will be paid to new recruits.

The GRA recently balloted its 10,500 members on their willingness to engage in industrial action.

But it is understood they will now be balloted on this new deal, after it is considered by the Central Executive Committee of the association.