According to a report in the Los Angeles Times, 78 percent of the Screen Actors Guild members who voted Tuesday evening favoured the new offer.
The new contract includes a three-percent pay rise. The contract means actors will benefit from the use of their work on the internet. More money for use on the internet and DVD was one of the main issues.
The new agreement will run until 2011.
The lengthy pay dispute split Hollywood. Tom Hanks, Robert Redford and George Clooney signed a letter with around 130 other famous actors, warning about the effects a possible strike would have in the current difficult economic situation.
Other stars including Mel Gibson, Josh Brolin, Ed Harris and Holly Hunter called for a harder line including a strike.
Last year, a 100-day strike by scriptwriters brought Hollywood to a halt and caused losses estimated at $2.5 billion.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks