Canadian Pacific Railway has reached a tentative contract settlement with the Canadian Auto Workers union, averting a strike.

The agreement, reached late Friday after nearly a week of negotiations, is expected to be ratified by the union in three weeks, both sides said Saturday.

The deal came hours before the issuance of a mandatory 72-hour strike notice by the union.

The two sides were facing a strike deadline of midnight Tuesday.

CAW Local 101 represents some 2,100 mechanical services employees at CP Rail (TSX:CP). Details of the agreement will be released after its ratification.

In late January, the CAW reached a tentative contract agreement with the Montreal-based Canadian National (TSX:CNR), the country's biggest railway, also averting a strike.

The Calgary-based CP Rail is Canada's second-largest railway.