Since last year around 9000 teachers had been participating in the strike over pay and conditions, despite a government order that the strike was illegal.
Solomon Islands National Teachers Association secretary-general, Johnley Hatimoana, told Radio Australia's Asia Pacific the union reached an agreement with the national government late this afternoon.
"We have called for the teachers to return to work by tomorrow [Tuesday]," Mr Hatimoana said.
He said the union and the government had signed a Memorandum of Understanding as well as an award agreed upon by a conciliatory tribunal.
Under the agreement, teacher salaries will be readjusted and paid at the agreed level from February 7th onwards, with teachers receiving another payment on February 21st.
This second payment will consist of the adjusted level of pay backdated to 1st January 2013.
Mr Hatimoana said a final payment-in-arrears, for work done in 2012, would be made on March 7th.
The payment from 2012 alone would total almost $19 million, he said.
Mr Hatimoana said he is confident the first payment will be made on time, on February 7th.
"It is not only a Memorandum of Understanding but that is an award from the tribunal, it is recognisable by law and if they breach that agreement they can be punished in any court of law," he said.
Legal counsel for the National Teachers Association, Donald Marahari, told Radio Australia during the strike that teachers could face a fine of $1000, six months imprisonment, or both for participating.