The 650 bus workers involved in the dispute will return to work on Saturday July 2, it said in an announcement on the talks that have taken place this week.
The strike was nearing the end of its fourth week when Arriva made an improved offer to Unite.
In what the union has described as an act of goodwill, Unite has suspended the strike action to allow its members to be balloted on the offer.
Unite regional officer Phil Bown said: “Arriva has come forward with an offer which our members will now be balloted on. While the ballot is being undertaken and as an act of goodwill Unite has suspended its strike action.”
If the offer is rejected by the members then strike action will resume.
Reacting to the news, Mayor of West Yorkshire Tracy Brabin said: “I’m relieved that Arriva and Unite have been able to reach an agreement that can be put to members. I’m sure that this news will also come as a great relief to the thousands of people who use and rely on Arriva services to get to and from work and education every day.
“I hope we can now see services return to normal as quickly as possible from Saturday 2 July.
“I look forward to working with all of the operators, drivers and depot staff to deliver the step-change in services we need to help West Yorkshire’s economy grow.”