San Jose's lead negotiator told the city council this morning that the San Jose Police Officers Association had ratified the tentative agreement.
Just hours later, the council voted and gave final approval to the contract. The city council vote was unanimous.
Firefighters and three other city unions already agreed to a 10-percent paycut for the duration of their contracts.
The new police deal would save more than 100 jobs, but red ink might still cost 122 police officers their badges.
The deal calls for a 10 percent reduction in pay and benefits for 2 years, plus other labor concessions.
The San Jose Police Officers Association had been in a bitter battle with City Hall over pension reform and other labor issues.