BT has offered a new pay deal to members of the Communication Workers Union in an effort to avoid a strike.

The company is believed to have offered a two per cent pay increase this year, and a three per cent increase the following year, in addition to extra payments of £250, which is dependent on the BT’s performance.

CIO 100 listed BT previously said that a one-year pay rise of two percent was its final offer, which the union rejected for being too low.

However, a spokesperson for BT confirmed that the company has made a new two-year offer to the CWU and said: “This offer is an attempt to break the current impasse with the CWU. We hope that they will consider it seriously and respond positively.”

The CWU gave BT until 4 June to come up with a higher pay increase offer than two percent, and decided to press on with a strike ballot when the deadline was not met. The union is demanding a five percent pay rise for its members.

The union confirmed that it had received a letter from BT late last night, but said it was "disappointed" with the new offer, which was "materially unchanged for this year in terms of pay".

Andy Kerr, CWU deputy general secretary, added: “BT’s decision to leak their offer to the media today has also raised trust issues for us with the company. We will meet BT to discuss whether an improved offer exists but we will continue to press ahead with plans to ballot our members on industrial action in the absence of any real progress on pay.”

In addition to the pay rise, BT is understood to have committed to not making any compulsory redundancies until the end of 2011. It also told the union that it is considering bringing call centre and back office jobs back from India, and contracted work back in-house.

BT’s troubled Global Services division, where CWU represents a number of employees, may also be affected if CWU rejects the new offer and a strike goes ahead. The division cut 5,900 jobs as part of a total group cull of 35,000 jobs in the last two years.