The City of Guelph and the union representing transit workers say they have reached a second tentative agreement.
The potential deal was reached after two days of negotiations.
"We share an interest with the city to get our buses running as soon as possible," said Amalgamated Transit Union Local 1189 President Andy Cleary in a statement. "I believe this agreement meets the needs of our membership and addresses many of our workplace concerns."
Until the agreement is ratified by both parties transit service in Guelph will remain suspended.
Members of the union will vote to accept or reject the agreement on August 7.
Last month, union members voted against accepting the first tentative agreement.