Trains from Newcastle to Wollongong and across Sydney were due to lay dormant from Friday morning until Sunday night amid an escalating pay dispute between the state government and rail workers.
The largest rail shutdown in living memory would have caused commuter chaos and an estimated $50 million dent in the economy.
Talks have averted industrial action by NSW rail workers. (Dan Himbrechts/AAP PHOTOS)
But late on Thursday, train guardspeople - ahead of Premier Chris Minns - announced a deal had been reached after last-minute talks with union heavyweights.
It involves the government agreeing to the union's demand to run trains 24 hours a day in return for no work bans.
But it won't involve all lines, with some to close overnight to enable track work.
Services were run around the clock last weekend to ward off stop-work bans.
Transport officials had tried to draw a line in the sand in recent days, stressing the maintenance disruptions made it unsustainable long-term.
Rail, Tram and Bus Union state secretary Toby Warnes and Unions NSW Mark Morey, who were each involved in Thursday's talks, are expected to speak later on Thursday.
Analysis released earlier on Thursday suggested a three-day strike would cause a hit of at least $50 million to businesses.
The NSW train network moves more than one million people on a typical day. (Bianca De Marchi/AAP PHOTOS)
"The ripple effect of the irresponsible and damaging train strike action will cost jobs, hurt essential services and is a kick in the guts for hard-working businesses," business lobbies including Business NSW said in a statement.
"Our state is being held to ransom in an act of economic sabotage.
"White-collar workers have the advantage of being able to work remotely.Â
"However, many of the 415,000 people employed in the retail sector and 306,000 people employed in the hospitality sector won't be able to perform their duties remotely."
It's the third straight day the premier has been personally involved in trying to solve the months-long impasse resulting in escalating work bans.
The opposition criticised the government for holding meetings day after day, rather than thrashing it out in one go.
"I can't understand why you wouldn't have stayed there yesterday all day until you got a deal done, until you got this sorted out," opposition transport spokeswoman Natalie Ward told Sydney radio 2GB.
The action comes against a backdrop of the union's demand for eight per cent pay rises annually.
The government says anything more than 11 per cent across three years is unaffordable.
The train network moves more than one million people on a typical day.
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