Managers and unions at Bankia, one of Spain's biggest and hardest hit banks, on Wednesday reached a preliminary agreement over the job cuts.

A strike threat was cancelled on Tuesday as both sides moved closer to a solution, the basis of which was published on Wednesday.

Bankia has agreed to shed 4,500 job, 400 less than the original proposal. Meanwhile the bank will look to offer incentives to those who lose their jobs, taking into account voluntary redundancies.

Meanwhile, the package offers 30 days wages for every year of employment, which is considerably above the legal minimum of 20 days established in the labor reform passed by the government of Mariano Rajoy last February.

Bankia will also make temporary salary reductions for its staff, although the unions insist this "will recover former levels with time and in relation to the fulfillment of the restructuring plan for Bankia."

Former Bankia President, Rodrigo Rato was questioned as part of an ongoing fraud investigation over Bankia before Christmas and the judge of the case has called Spain's Economy Mnister Luis de Guindos to testify on February 18.