A NORTH-EAST university has stepped back from its decision to withhold the wages of its lecturers.

Northumbria University had threatened to hold back 100 per cent of pay from lecturers who refused to mark exam papers.

The lecturers, members of the Natfhe union, had refused to do the work as part of a nationwide dispute over pay.

Hundreds of thousands of students across the country face disruption by the action, with some exams cancelled or coursework left unmarked at 40 per cent of British universities.

At a meeting yesterday, Natfhe members agreed to accept an agreement reached between the union and Northumbria University that lecturers would not have their wages docked.

As a result, the Northumbria lecturers have called off an all-out strike that was due to begin this week.

The lecturers will continue their assessment boycott, but the university has agreed to suspend any action against them until at least June 17, in the hope that the national dispute will be settled by then.

University bosses say they will look at the situation again after June 17, if the dispute is still running, as students will not graduate if marks are not submitted by that date.

A Northumbria University spokesman said: "Natfhe's decision to withdraw the threat of indefinite industrial action, commencing Monday, May 23, is very good news for the University, its staff and students."

Nationally the university employers group UCEA has asked conciliation service Acas to start talks today with the Association of University Teachers and Natfhe in a fresh attempt to end the national dispute.

The employers have made a ''best and final'' pay offer of 12.6 per cent over three years.

But the unions have rejected this and demanded a 23 per cent rise over the same period. They argue that academics pay has fallen far behind that of comparable professionals such as doctors.