HOLLYWOOD (CBSLA.com) – Actors and producers reached an agreement on a new three-year contract Tuesday morning, avoiding a possible strike, the Hollywood Reporter reported.

“The Alliance of Motion Picture and Television Producers and the Screen Actors Guild-American Federation of Television and Radio Artists have concluded negotiations and have reached a tentative agreement on terms for a new three-year collective bargaining agreement,” the AMPTP said in a statement, the website reported.

READ MORE: Man And Woman Shot To Death In Gardena

The deal was reached at around 5:45 a.m. Tuesday after extended negotiations following the expiration of the old contract on June 30.

It includes annual wage raises of 2.5 percent, 3 percent and 3 percent over the next three years, the Hollywood Reporter said. The overall value of the deal was pegged at $256 million, outpacing the previous contract’s value of $200 million.

READ MORE: Local Doctors Flying Back From Super Bowl Save Woman's Life On Plane

Negotiations were conducted at the AMPTP headquarters in Sherman Oaks.

The SAG-AFTRA membership still has to vote on the deal before it can go into effect.

MORE NEWS: Rally Held Outside LA Hall Of Justice To Recall District Attorney George Gascón

(©2017 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)