The four-year agreement covers members of the Communications Workers of America in 36 states and the District of Columbia. AT&T is not disclosing the details of the agreement until it has been presented to union workers.
The CWA confirmed in a separate statement Saturday that an agreement had been reached, but is declining to provide details.
The agreement, which must be ratified by union members, covers wages, pensions, disability and work rules. The union negotiates health care benefits separately.
AT&T Inc. is based in Dallas, Texas.