Long-suffering Southern Railways commuters have suffered travel misery for months
The two sides held lengthy talks to sort out a long-running row over driver-over trains which sparked a series of strikes and brought chaos for commuters.
Around 1,000 drivers will now vote on the deal, hopefully bringing some relief to passengers who have suffered months of disruption because of industrial action and staff shortages.
The Rail, Maritime and Transport union is still in dispute with Southern over changes to the role of conductors.
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Southern Railways and the unions have been locked in a bitter dispute
Aslef has never been against changes to working methods
Aslef general secretary Mick Whelan
The RMT announced it is to ballot workers on Merseyrail for industrial action over the role of guards.
Aslef general secretary Mick Whelan said he welcomed the agreement which he described as "a significant step forward in addressing the safety concerns of Aslef members on Southern Rail".
He said: "Aslef has never been against changes to working methods.
Southern Railways and union chiefs have reached an agreement after lengthy talks
"Rather, we believe any changes should be negotiated through agreed procedures.
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"I am confident this deal can provide a safer and appropriately staffed railway for passengers on Southern Rail and I will be recommending it to our members."
He said about 930 Aslef members would vote in a referendum on whether to accept the deal and ballot papers would be dispatched on Friday, to be returned by 16 February.
Southern Railway said it had always wanted to reach agreement with the unions Commuting chaos from around the world Thu, July 9, 2015
With the current tube and rail strikes, commuters across the UK are having a harder time than usual making the journey to work. To ease the pain, take a look at these pictures of commutes from around the world.
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Nick Brown, chief operating officer of Southern's owners Govia Thameslink Railway, said: "Our aim has always been to reach agreement with the unions on our proposals and we're delighted to have secured a deal today with Aslef to end their dispute.
"It's good news for passengers, the regional economy and staff. After the misery and disruption to people's work and family lives, we are pleased we can start to move forward and deliver a better railway for the travelling public."
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