Bus drivers are set to take indefinite strike action during the opening of the Edinburgh Festival Fringe - unless they accept a last-minute deal in a long-running dispute with management.

Unite union has given Lothian Buses the required notice, with members scheduled to walk out at 3am on Friday, August 2 - which is the first day of the annual event.

However, the industrial action could be called off if the drivers vote to accept a last-minute offer which includes a 2.7% pay rise.

It also includes new measures to address concerns over bullying.

Richard Hall, Lothian Buses managing director, said: "We have had positive discussions with Unite which has now led to a deal being agreed between Lothian and union officials.

"They have agreed this will be taken forward to their members with a recommendation to accept the proposal.

"It is the hope of both parties that this agreement can be passed in order to avoid disruption at one of the busiest times of year in the city."

Last month, union members took part in a ballot - with 91% voting to go on strike ahead of talks to resolve a dispute over a "hostile" culture at Lothian Buses.

Negotiations via arbitration service Acas resulted in a deal, which was then rejected by the workforce.

Further talks took place last week with the new proposals scheduled to be put to the membership in a workplace ballot this Friday in the hope of averting a strike.

Lyn Turner, regional industrial officer with Unite, told STV News: "Lothian Buses have tabled a new proposal which is enhancing the proposals made at Acas in June and we will now take those fresh proposals to a workplace ballot with our members on July 26."

Mr Turner said the union will be recommending for its members to accept the proposal.

He stated: "Clear timelines have been set now by the company where they will address issues - for instance, the bullying and harassment."

An independent company will be brought in to address management's "behavioural issues" via training.

Mr Turner stated the union will be "holding management's feet to the fire" to make sure the issues are addressed in the "timescales agreed via the proposals".

He added: "But the mandate for industrial action remains for the next six months.

"We'll need to see what the ballot result is."