Academic and general staff would get a 10.9 per cent pay rise under a proposed deal announced by the university and unions on Monday.

In 2005 the National Tertiary Education Union started a class action against the university over what it said was the university's misleading conduct in the way it offered AWAs to staff.

The university denied it had misled staff or breached the Workplace Relations Act.

In February this year a settlement was reached between the two parties allowing all staff who had signed an AWA to move to a collective agreement.

Under the proposed agreement, the wage rise would be delivered in four instalments, beginning with a 1.9 per cent increase September this year and continuing until January 2010.

The deal was hammered out by the university and the National Tertiary Education Union, the Liquor, Hospitality and Miscellaneous Union and the Australian Workers Union.

It must be ratified by those unions' members, approved by the State Government and signed by the university before it is finally put to a vote of all staff.

If that vote is successful, the agreement would be formally adopted.

Other key points of the draft deal include access to higher rates of superannuation for TAFE employees, and a commitment by the university to increase indigenous employee positions from four to seven by December 2009.

NTEU Victorian division general secretary Matthew McGowan described the deal as "historic" and reflected an improved climate at the university.

University of Ballarat Vice Chancellor Professor David Battersby said the university was confident the new deal had the support of staff.