The bus company has tabled an updated offer which could head off the threat of strike action by staff across Fife and Tayside..
It comes after “constructive discussions" with trade union Unite, and members.
If accepted, the proposed new two-year deal would increase pay by an average of 7.5%.
Unite has recommended members accept it.
Douglas Robertson, managing director of Stagecoach East Scotland said: “We have had constructive discussions today with Unite.
“We are pleased to have put together positive pay packages for our people that are strongly supported by the union.”He added: “Throughout our discussions, our priority has been to protect jobs, ensure our people who keep our communities connected are properly rewarded, and secure the long-term future of bus networks in east Scotland."
Earlier this month, Unite called for a “fair” pay deal based on the Retail Price Index inflation figure 3.8% at July plus 1% .
Stagecoach East had offered a 2.4% pay rise backdated to the start of May.
That was overwhelmingly rejected by almost 600 bus workers which included drivers, engineering and administrative staff, and cleaners.
They also backed strike action in support of their claim.
Stagecoach’s initial offer included new start drivers reaching full pay rate six months earlier, and a commitment to a further pay review for east Scotland employees in May 2022
It said the 2.4% offer to staff at depots in Dunfermline, Glenrothes, Leven and St Andrews would see them get up to £633.33 more per year.