Staff at Bankia, which received the biggest bailout in Spanish history, were among those set to take to the streets on Wednesday in the first major walkout of banking staff in 20 years.

The Comisiones Obreras union said in a statement that the Bankia strike had been called off after "significant movement" in the positions of negotiating parties in talks on Tuesday morning.

A walkout at smaller Banco de Valencia, which was bought for one euro ($1.35)last year by Spain's third lender Caixabank but is still technically in government hands, was also called off.

Staff at a nationalised NovaGalicia Banco, from Spain's northern region of Galicia, are still set to strike on Wednesday. That lender has about 5,000 staff.

Roughly a third of the 5,000 Bankia workers set to be made redundant could now be allowed to sign up to early retirement plans, a union source said, although he added that no firm deal had yet been reached.