Lufthansa has agreed to general arbitration on wage and pension agreements as a further concession to its flight crew union.
Vereinigung Cockpit (VC) has repeatedly demanded general arbitration of all open collective wage agreements.
But previously Lufthansa has rejected it on the basis that many collective wage agreements have not yet been negotiated.
Dr. Bettina Volkens, managing director for legal affairs and human resources of Deutsche Lufthansa AG, said: "We would have liked to negotiate on open issues with VC before submitting these complex issues to an arbitrator.
"In order to finally settle this long wage dispute, we are willing to take this step. We need to avoid further strikes at the expense of our passengers."
Lufthansa has offered to start discussions with VC this week on the selection of an arbitrator.
The Vereinigung Cockpit union said it required further details before responding, reports the Financial Times.
Arbitration should guarantee no further strikes as pilots will not be allowed to walk off the job once a mediation process is under way.
Pilot strikes have been over early retirement benefits and plans by Lufthansa to expand low-cost services under the Eurowings brand.
