Train drivers have called off a strike during next week’s AFL Showdown between Port Adelaide and the Adelaide Crows after reaching an “in principle” agreement over a pay dispute.

The Rail, Tram and Bus Union (RTBU) had threatened a 24-hour stoppage on May 2 aimed at forcing private train contractor Keolis Downer (KDA) to improve its pay offer.

The union had been demanding a 20 per cent pay rise over four years, but had only been offered an increase of 14.7 per cent over the same period.

Following a lengthy emergency meeting on Friday, the RTBU has negotiated a draft two-year deal — a 5 per cent pay increase in the first year and 4 per cent in the second year.

The union’s branch organiser, Hayden Boyle, said the revised offer was “a reasonable outcome” for their members.

“We decided we’d go with a two-year deal because we felt the quantum of the increase could be reached in a two-year deal,” Mr Boyle said.

“The feeling is if you look at that over a four-year term, it’s 18 per cent.”

The proposed deal also includes back pay to January 1 this year.

Hayden Boyle says the in principle pay deal was reasonable.(ABC News)

RTBU members will vote for or against the proposed agreement in coming weeks.

Mr Boyle told ABC Radio Adelaide all industrial action, including a planned strike for Showdown on Thursday, have been withdrawn.

Despite the removal of overtime bans, he cannot ensure that footy express services for Friday night’s Port game against St Kilda would resume as usual.

“Unfortunately the operator decided to leave it very last minute and we were forced into this position,” Mr Boyle said.

A KDA spokesperson confirmed all industrial action, including “associated stoppages and overtime bans” are called off and thanked the community for their patience.

The proposed agreement follows a series of work stoppages this month.

The former Liberal government privatised tram and train services as KDA took over Adelaide’s rail network in 2021.

KDA struck an eight-year deal with the Labor government last year to hand back train operations by 2025.