Health Secretary Stephen Barclay is to meet Royal College of Nursing bosses for pay talks later, after the union suspended next week's planned strike.
In a joint statement, after months of bitter dispute, the two sides said they would begin "intensive talks" on "pay, terms and conditions" and "reforms to enhance productivity".
The RCN had originally asked for a pay rise of 5% above inflation.
It has since said it would be willing to meet the government half-way.
Other health unions said they were disappointed not to have been invited to the discussions.
Next week's walkout in England, from 1 to 3 March, was set to be the biggest strike of this winter's pay dispute, with half of frontline services affected.
The action would have included nursing staff from emergency departments, intensive care units, cancer care and other services that were previously exempted.
RCN general secretary Pat Cullen said: "We will put our plans on the table, they can put their plans on the table - but I'm confident that we will come out with a fair pay settlement for our nursing staff."
She added they would make sure no stone was left unturned and a fair pay deal was reached as quickly as possible so they could end the strikes.
Ministers had for months refused to discuss adding to the 2022-23 pay award of 4.75% on average for nurses and other staff.
The RCN for its part had made that a line in the sand - and it is fair to assume that the union head, Pat Cullen, would not have entered into the new talks if there had not been a softening of the government's stance.
Shortly after the announcement that both sides would be restarting talks, the government also unveiled its plans for the 2023-24 pay rise, which would come in to effect in April.
It told the NHS pay review body it was willing to give a rise of 3.5%. But it does not rule out going higher than this.
Nobody is confirming the precise scope of Wednesday's discussions but it seems likely that some sort of payment to add to the existing award this year will be on the table.
One source close to the negotiations said the door had been opened for next year's pay award to be backdated.
The joint statement said: "The government and RCN have agreed to enter a process of intensive talks.
"Both sides are committed to finding a fair and reasonable settlement that recognises the vital role that nurses and nursing play in the NHS and the wider economic pressures facing the UK and the prime minister's priority to halve inflation.
"The health secretary will meet with the RCN on Wednesday to begin talks. The RCN will pause strike action during these talks."
"The past weeks have seen a worrying escalation of industrial action, which has hit patients hard. This is the glimmer of hope we all needed," he said.
But a spokesperson for one health union, Unison, said the government's decision to meet just the Royal College of Nursing alone - and not them as well - would do "nothing to solve the NHS pay dispute".
The NHS faces further industrial action from unions representing ambulance drivers and junior doctors, and more dates could yet be announced.
Junior doctors in England have voted to strike, possibly as early as mid-March. Sources at the British Medical Association (BMA) have said the 26% pay demand - what they estimate their drop in earnings has been once inflation is taken into account since 2008 - does not necessarily need to be paid in one go, but until the government agree to restoring pay, industrial action would go ahead. The union has yet to decide whether to strike elsewhere in the UK.
Ambulance staff in the Unite union in Wales and north-west England are out on strike on Wednesday. Further strikes are scheduled in England and Wales during March.
Meanwhile, teachers in parts of England are going ahead with planned strikes next week. The National Education Union has rejected the government's invitation to formal pay talks in return for pausing the industrial action, but its joint General Secretary Kevin Courtney said the national executive, which meets on Saturday, could change that decision.
Sir Julian Hartley, chief executive at NHS Providers which represents health managers, said 140,000 appointments have been disrupted because of recent strikes.
He welcomed the RCN development but warned the "spirit of negotiation" would need to continue in talks between the government and other unions representing NHS staff in order to clear Covid-19 backlogs.
The Scottish government has offered NHS staff - including nurses - a new pay offer for the coming year which includes a one-off payment and an average salary rise of 6.5% from April.
In Wales, nurses are currently being balloted over a new pay deal from the Welsh government and the RCN has put some planned walkouts for February on hold.
Source: BBC
Image: Pixabay
