John Guidi says he has taken the step “in good faith” before a planned meeting with Clydesdale Bank chief executive David Duffy in London on Friday.
The case of Mr Guidi, who has been protesting in Glasgow over his treatment by the bank and Cerberus Capital Management, was raised in the House of Commons by SNP MP Angela Crawley on Tuesday.
Ms Crawley said her Lanark and Hamilton East constituent has been made personally bankrupt and risks losing his family home within weeks.
She urged the UK Government to enable an independent financial tribunal to resolve such disputes in a fairer way.
Treasury minister John Glen, who said he was taking the case “very seriously”, told MPs that he understood enforcement action against Mr Guidi is on hold and that both Clydesdale and Cerberus have offered to meet him.
A meeting between Mr Guidi and Mr Duffy is now scheduled to take place in central London on Friday afternoon, it has been confirmed.
In a statement on Wednesday, Mr Guidi said he has “suffered badly”.
“I have been bankrupted; my business has been sold off and now my home is under threat,” he said.
“In good faith I am suspending my hunger strike until the meeting with David Duffy.”
Despite suspending his four-day-long hunger strike, Mr Guidi’s protest is still said to be continuing.
A spokeswoman for Clydesdale Bank owners CYBG said: “Clydesdale Bank has taken no action against Mr Guidi in relation to his house and other parties involved in this process are not acting on behalf of the bank - however, we have offered Mr Guidi a meeting with our chief executive to discuss his case, which will take place this week.
“We understand Mr Guidi’s trustee in bankruptcy has put the court action in respect of his house on hold, pending the outcome of related court proceedings. With this in mind, for his safety and well-being, we have strongly urged Mr Guidi to stop his extreme personal protests.
“Separately, Mr Guidi has previously raised complaints with the bank. We are confident these historic complaints have been properly reviewed, including the fact our decisions have been subject to external and independent review.”