The union was balloting members over potential strike action after rejecting a multi-stage 9.3% increase from ScotRail over three years.
However, a new offer has now been submitted which ASLEF is recommending that its members accept.
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Jim Baxter, ASLEF Executive Committee member, said: “After the latest round of talks with Scotrail we are pleased to report that the latest offer made to our members is one that the ASLEF negotiating team thinks is acceptable.
“Our ballot for industrial action has now been withdrawn and a referendum of our members, on the offer, will now be held.
“The negotiating team and Executive Committee are recommending that members accept this offer.
“The referendum will close on the 25th September.”
The specifics of the new pay deal have not been made public, but it’s understood that staff will be given a 4.5% pay rise backdated to April.
ScotRail service delivery director Mark Ilderton said: “The talks with trade union colleagues have been very constructive and it is a fantastic step forward with ASLEF withdrawing the ballot for industrial action and moving forward with a member referendum on the pay offer.
“We recognise the hard work of our colleagues, and the cost-of-living challenges faced by families across the country and believe that the pay offer reflects this, as well as providing value for money for the public finances.”
Earlier this month it was announced that ScotRail will be bringing back peak fares at the end of September.
A year long pilot scheme in which they were removed failed to deliver the necessary increase in rail use, the Scottish Government said.
Cabinet Secretary for Transport, Fiona Hyslop said: “The pilot primarily benefitted existing train passengers and those with medium to higher incomes. Although passenger levels increased to a maximum of around 6.8%, it would require a 10% increase in passenger numbers for the policy to be self-financing.”
She said the pilot will have saved many passengers hundreds, but that the level of subsidy required “cannot continue in the current financial climate on that measure alone.”
The minister said ScotRail would instead offer a 12-month discount on all season tickets and amend the terms of flexipasses to allow for 12 single journeys for the price of 10.