AC Transit authorities and the union representing the agency's bus drivers and dispatchers have tentatively agreed to a new three-year contract, officials said late Tuesday.
The deal averts a strike that would have stranded more than 180,000 riders throughout the East Bay.
Buses are scheduled to be running Wednesday morning.
On Monday ATU Local 192 gave the transit agency notice its workers planned to walk off the job at 12:01 a.m. Wednesday morning if a deal was not reached. A walkout would have shut down the system.