VC was responsible for Ryanair's first ever pilot strike in December last year.
The four-year deal includes agreements on pay, pension, pilot allowances and annual leave and will be fleshed out in detailed documents to be signed by the end of February, Europe's biggest low cost airline said.
"While it is not a full CLA (collective labour agreement) yet, this is clear progress by Ryanair and the VC union, which has been one of the more troublesome unions to date," Goodbody airlines analyst Mark Simpson said in a note.
"Given the progress it looks as it fears over a German strike at Christmas are now unlikely," he said.
Ryanair shares were up 1.3 percent at 11.67 euros at 0810 GMT.
(Reporting by Shashwat Awasthi in Bengaluru and Conor Humphries in Dublin editing by Patrick Graham and Keith Weir)
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