Conciliation service Acas said the action had been suspended amid negotiations between Unite and the city council to bring the seven-week dispute to an end.
The city council agreed certain posts would not be made redundant and Acas said bin collections could now resume.
Union officials said in return they would recommend staff considered accepting rota changes.
A statement said the council and Unite had made sufficient progress in their talks to allow the industrial action to be paused.
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The statement said both parties would continue to discuss how the bin collection service could be improved and what savings could be made.
It also said Unite had also agreed in principle to recommend its members accept work pattern changes, including considering a five-day working week instead of the current four days.
Unite said it had achieved victory in the bin dispute.
It said the council had accepted the refuse workers' case and restored the jobs of grade three workers, who are responsible for safety at the back of refuse vehicles.
Assistant general secretary Howard Beckett said: "We are very pleased that we have reached the stage where we can suspend the industrial action while we hold further talks about the future of the refuse service.
"I know this news will be greatly welcomed by the people of Birmingham as they look forward to their bins being collected again on a regular and seamless basis. I would like to thank them for their understanding over recent weeks."
The strike action, which consisted of two or three-hour stoppages during a daily shift, had been set to last until 21 September - with talk of it possibly lasting until Christmas.
The amount of rubbish left in some streets led to residents taking action to clear up the waste themselves.
Volunteers the Bearded Broz cleaned up 45 tonnes of waste in the Yardley area, leading them to be called scabs by the Morning Star newspaper.
Naveed Sadiq from the group said members had met refuse workers who said they "respected" the team for taking care of their areas.
A long-running bin strike in Birmingham has been called off.