The threat of a TV blackout for football in England ended yesterday when the Professional Footballers' Association called off its proposed strike. The Premier League and Football League tempted the PFA into an uneasy truce with a face-saving compromise over their financial dispute.

On a day when it seemed as though the Hilton Hotel at Manchester airport saw more human traffic than Terminal One, the warring factions finally emerged from tortuous negotiations to announce they had reached a settlement.

The PFA will now receive £52.2 million sterling over the three years of the league's current TV contract, having turned down £50 million, or £16.7 million a year on Tuesday night, and, before that, the original offer of £30 million.

This represents 2.5 per cent of the current TV deal. That is still well short of the five per cent that Gordon Taylor, the PFA's chief executive, wanted from the league's television contract. The union has also negotiated the right to total discretion about how it uses its money. Both sides agreed not to reveal further details yesterday.

In a concerted attempt to prevent a similar row breaking out in the future the two sides - brought together by the FA's chief executive Adam Crozier - have also agreed two fixed percentages for when the next TV deal is announced, dependent on whether the revenue has gone up or down. An announcement is expected on Monday.

"We are confident this agreement means this type of dispute will never happen again," said Richard Scudamore, the Premier League's chief executive. "We now have a mechanism in place which will ensure a smooth passage next time."

It was a dramatic end to an acrimonious and drawn-out dispute, with the PFA having targeted December 1st as the first day for a players' strike and the Premiership returning fire by starting legal proceedings to take out a court injunction.

Yesterday, there were handshakes all round as the negotiations reached their conclusion in the Hilton's Orly room - even if Taylor's demeanour suggested he was still unhappy about certain details.

Pacing the hotel foyer and taking cigarette breaks outside, the one-time player looked anything but the contented individual he later described himself as. "We have worked night and day to find a formula whereby both of us can leave the table with satisfaction, and that is exactly where we are," he insisted.

"The players never wanted to go on strike but it was a measure of how strongly they felt that they were prepared to take industrial action.

"We have compromised, and I believe there is satisfaction for both parties. The terms of the agreement acknowledge the integrity and independence of the PFA because we have been given full discretion on the use of our money. I can assure everyone this money will be well used."

The final round of talks got under way after Taylor received a call on Thursday night from Crozier, speaking on behalf of Scudamore - Taylor's main antagonist throughout the dispute.

The various parties agreed to meet at the Hilton at 8 a.m. yesterday and after thrashing out a deal three hours later they announced a news conference would be held at lunchtime. Instead it took another five hours for lawyers to put the agreement down on paper.

Manchester United's chief executive Peter Kenyon called it "great news for football fans".

Liverpool's caretaker manager Phil Thompson said: "I have supported the PFA's stance. After being a player myself and being injured I know what good they do, particularly the support they give players in the lower divisions. I'm just glad everybody has sat down and come to a compromise."

The settlement marks the end of four months during which the sides regularly negotiated in London and Manchester and blamed each other for the impasse.

Taylor had been hinting at strike action from the moment the football authorities, led by Scudamore, made their initial offer of just under £30 million sterling. Taylor said that figure was insulting and stuck to his demands that the PFA should receive the five per cent, which would have amounted to £35 million a year over the three years.

The agreed figure speaks highly of Scudamore's negotiating skills. By starting at what Taylor described as a ridiculously low figure Scudamore has managed to keep the total amount down, something that will please his employers, the Premier League chairmen.

"What they have ended up giving us is the amount negotiations should have started at," said a PFA source.