Phoenix Mayor Greg Stanton announced a strike had been averted and bus service will be up and running for the Super Bowl.
Drivers had threatened to strike during Super Bowl week, but after negotiating through the night, a deal had been reached.
Stanton said reaching a decision before the Super Bowl was critical for thousands of valley residents who use the bus to get to work.
"For so many working families in west Phoenix, these bus drivers are their way to get to work, to get to school, to get to church, to get to doctors appointments.. it is their way to live their life," he said.
>>VIDEO: Click here to watch the news conference
First Transit, Inc. is contracted by the city to run 14 bus routes that serve thousands of riders. Some of the routes include stops in Glendale, where the Super Bowl will be played Feb. 1.
Health insurance costs and work schedules have been among issues in the contract talks between First Transit and Amalgamated Transit Union Local 1433.
Drivers and other employees have continued working since the last contract expired in June. Union members in December overwhelmingly rejected a company proposal.
The exact details of the contract were not released.
PHX mayor Greg Stanton announces strike has been averted for bus drivers in West Valley. Just in nick of time w #SuperBowl 12 days away!The Associated Press contributed to this report.
— Ron Hoon (@RonHoonFox10) January 20, 2015