The Air Line Pilots Association (ALPA) had voted "overwhelmingly" in favor of a strike if needed, when it had entered the final stages of a contract negotiation with the company.
FedEx did not provide any further details on the agreement. ALPA did not respond immediately to a Reuters request for comment.
The development comes at a time when aviators enjoy higher negotiating power with strong demand and a tight labor market in the sector, motivating them to push for better contracts with airlines and parcel firms.
The agreement prevents a possible strike after 99% of about 6,000 FedEx Express pilots that ALPA represents voted in favor of one, as they asked the company to meet recently improved industry standards for pilot pay.
