The Manitoba Government and General Employees' Union says the two sides came to an agreement Thursday night.
President Michelle Gawronsky says pressure was on the bargaining committee with the threat of a strike over the holidays.
Workers at Manitoba Liquor Marts had given the union a 97 per cent strike mandate.
No details of the proposed deal are being released until the union can talk to its 868 members.
The union is recommending workers accept the deal. Ratification meetings are being set up.
"When the employer tabled a final offer so close to the holiday season, which is the corporation's busiest time and a time when Manitobans gather to celebrate with family and friends, we knew the pressure would be on our bargaining committee," Gawronsky said in a release Friday.
"This was not an easy process for anyone, and it's important to remember that these workers have families of their own who were facing the uncertainty of a possible strike over the holiday season."
The main sticking points in negotiations were wages and benefits.