Non-consultant hospital doctors are to defer a planned ballot for strike action over a €3,000 allowance following an invitation by the Government to new talks.
However, a court case on the issue is still scheduled to go ahead next month.
The Irish Medical Organisation (IMO) said if the new talks proved unsuccessful, the planned ballot for industrial action would be re-activated.
The dispute centres around the payment of a €3,000 accommodation allowance - known as a “living out” allowance - which was unilaterally abolished in 2012 by the then-government.
The Department of Health proposed new talks on Friday ahead of the planned strike ballot by doctors.
The IMO non-consultant doctor committee and its overall council agreed to the move at meetings on Saturday.
The IMO said in a statement: "Despite reservations as to the willingness of the Department of Health and Department of Public Expenditure and Reform to engage meaningfully in addressing these matters, the IMO have agreed to defer the ballot for Industrial Action by NCHDs pending the outcome of the talks.
"However it should be noted that the IMO is proceeding with its legal action against the HSE in regard to the Living Out Allowance and this matter is scheduled for hearing in the High Court on 21st February 2017.
“Should agreement not be reached in these discussions the IMO will reactivate the ballot for industrial action by Non Consultant Hospital Doctors.”
IMO president Dr John Duddy said the prime concern of doctors is the care of patients and no doctor wants to take industrial action.
"However given the persistent attitude of Government and the HSE who show a blatant disregard for NCHDs we have had no choice but to consider industrial action. While we are prepared to enter discussions and we hope those discussions will yield a positive result there are many issues that need to be addressed to stop the trend of doctors leaving Ireland to work abroad," he said.
“The reasons why doctors leave Ireland are multi faceted and are not just about pay but also around training, working conditions and career progression. Government must recognise this and develop a coherent retention programme to keep our doctors in Ireland.”