A deal over pay and conditions has been struck between British Steel workers and the Chinese industrial firm which wants to buy the business out of administration, unions have confirmed.
But workers' representatives said they expect to see up to 500 job losses following 10 days of "extremely challenging" negotiations with Jingye management to discuss their business plan and in particular their proposals relating to employment.
Jingye is looking to buy the business from Government liquidators, after ministers promised to fund the company following its collapse last year. It is thought to be losing up to £1 million a day.
Senior union representatives endorsed the deal on Thursday in principle, with full details being drawn up.
But disappointment remained over the potential job losses, with unions arguing that the positions are necessary at the plant.
Bosses from the Chinese firm remain positive over the future of British Steel.