Goodyear and United Steelworkers have reached a temporary agreement two hours before a deadline.
Union workers said if they didn't reach an agreement, they would go on strike.
The new master contract covers six Goodyear plants including the one in Danville and about 8,000 employees.
In 2006 plant workers held a three month strike alongside thousands of other employees across the nation.
Goodyear is Danville's largest employer.
Below is the statement from Goodyear:
The Goodyear Tire & Rubber Company and the United Steelworkers (USW) have reached tentative agreement on a new master contract covering about 8,000 employees at six U.S. plants. Ratification votes will be scheduled at the facilities in the near future.