The Union Haddiema Maghqudin has suspended the 11-week-old industrial action taken by ambulance drivers after contact was made between Deputy Prime Minister Lawrence Gonzi and union general secretary Gejtu Vella.
Mr Vella said he expected to meet Dr Gonzi this afternoon in a bid to find a solution.
The dispute is over a union claim for allowances for the drivers. It has been running for over three months.
Mr Vella said earlier this week that the dispute highlighted the need to set up a conciliation and arbitration structure for government employees who are in dispute with their employer.
The union maintains that all the drivers were asking for was an allowance of Lm3.75 a week. With 50 ambulance drivers, this would cost the government Lm9,750 annually.
Ambulance drivers receive a maximum salary of Lm4,252 before tax and before NI contributions are deducted.
The health division said the ambulance drivers' action was causing hardship to patients, preventing services from being provided, causing delays in their treatment and prolonging stays in hospitals.