A strike that shut down the Long Island Rail Road for three days ended on Monday night after negotiators reached a deal, New York Governor Kathy Hochul announced, with train service set to resume in phases from Tuesday.

More than 3,500 employees walked off the job at 12:01 a.m. on Saturday after contract negotiations broke down over wage increases and cost-of-living adjustments. It was the first strike in three decades on the railroad, the busiest commuter system in North America.

The shutdown forced roughly 250,000 weekday riders to work from home or scramble for alternatives, straining roads and other transit links across Long Island and into New York City. Shuttle buses were arranged from several stations to connect passengers with the subway network.

Under the agreement, the union representing the workers had sought a 5 per cent increase in the final year of the contract, while the Metropolitan Transportation Authority had offered up to 4.5 per cent alongside a series of other concessions. The full terms were not immediately released.

Ms Hochul said limited service would resume at noon on Tuesday, with the first trains running on the Babylon, Huntington, Port Washington and Ronkonkoma branches. Service on the remaining branches would follow shortly afterwards, the railroad said.

Officials urged commuters to expect a reduced timetable as crews returned to work and equipment was repositioned, and to check schedules before travelling.

The MTA, which operates the railroad, said it would work to restore a full schedule as quickly as possible. Business groups on Long Island welcomed the settlement, warning that a prolonged stoppage would have inflicted lasting economic damage.