The RMT union has suspended the five-day strike that was due to start on Sunday (12 July).
It said: “The RMT has agreed today to suspend its proposed industrial action among Southern engineers following successful pay talks.
“During the forthcoming pay talks, Southern (with the agreement of GTR) will make an offer which will include a reduction in the working week, in a phased way, to a 37-hour week by May 2017 as part of a multi-year deal to be negotiated with GTR (Govia Thameslink Railway).
“Southern recognises that the hard work and commitment of our engineering staff has contributed towards the efficient operation of the company over the life of the franchise and any pay offer will be fully cognisant of this fact.
“In recognition of this the RMT has agreed to suspend the current dispute.”