London Underground train drivers working during the Olympics will receive a one-off payment of �500 and extra money for working extended hours.

All train drivers employed by 26 July 2012, the day before the opening ceremony, will receive the sum to help LU “meet the demands of extended services” during the Games.

Where a shift exceeds eight hours, drivers will be paid an additional hourly rate per extra hour on duty and, if that shift finishes after 1.30am, drivers will be paid overtime for each hour.

The temporary changes to working arrangments and payments during the 2012 Olympics follows six months of discussions between LU and union representatives.

Mike Brown, London Underground’s managing director, said: “This agreement is a good deal for London Underground, our drivers and those thousands of customers who will be attending the London 2012 Olympics and Paralympics Games.

“LU is committed to ensuring that the train service we provide contributes to the successful operation of the Games and I am pleased that we and the unions have been able to engage in constructive dialogue to reach this agreement.”

LU and union discussions concerning drivers’ pay are separate from this arrangment and are still ongoing.