The SAG-Aftra actors union however remains on strike.

While actors remain on strike, late-night and daytime talk shows may resume production once their writers receive the guild's green light to return to work in the coming days or weeks.

The settlement, while a milestone, will not return Hollywood to work.

Roughly 11,500 WGA members walked off the job in May, angered by how working conditions have changed in the streaming TV era.

Writers are seeking higher compensation and protections around use of artificial intelligence.

According to the latest proposal, the Writers' Guild of America will get a compounded 13% pay increase over the three-year contract, and AI-generated written content will not be considered 'literary material'.

In what would be a sign of progress in a months-long labour dispute, negotiators for the WGA and AMPTP met to discuss the latest contract proposal, more than 100 days into the strike.

The strike began after talks between the WGA and the major studios reached an impasse over compensation, minimum staffing of writers' rooms and residual payments in the streaming era, among other issues.

The WGA went on strike May 2 after failing to reach a new labour agreement with higher pay from Hollywood studios such as Netflix Inc and Walt Disney Co.

The 11,500 members of the Writers Guild of America have given their union leaders the power to call a strike after their current contract expires.