Impact said it called off the strike action because Ryanair had agreed to recognise the union as the representative of its Irish-based pilots.
Impact, which represents Irish-based pilots, has agreed to meet the low-priced carrier's management on Tuesday evening ahead of the planned strike on Wednesday.
The airline said in a statement: "The Portuguese pilot union has requested a meeting next week and Ryanair has offered to meet them on Thursday December 21".
Union spokesman Niall Shanahan has welcomed the progress, but said that they can not call off the strike just yet.More news: Health officials: Flu rampant in NY
On Saturday night, Ryanair offered to meet on Tuesday, but Impact refused to budge.
Ryanair pilots have called off a planned strike action due to take place on Wednesday.
The union added that it had asked Ryanair to release its pilot representatives to prepare for and attend the meeting.
Speaking to the Sunday Independent, a senior union source insisted the get-together between both sides would have to be before the Wednesday deadline. Up until the latest company announcement, it had a very public and vehement attitude it wouldn't talk to unions. "Taking what they say - based on trust - is not a sensible thing to do".More news: Russell Westbrook's triple-double helps Oklahoma City Thunder beat Philadelphia 76ers
There were hopes of a breakthrough yesterday when the airline agreed to their demand for union recognition.
"The British and Italian pilots' unions have agreed to meet with Ryanair in early January".
It's the biggest industrial relations climbdown in the airline's 32-year-history.
Claims by two analysts that Mr O'Leary's position as chief executive, which he has held since 1994, was being questioned by investors were met with a terse response from the airline.More news: Tax bill kills health insurance mandate
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