It means local passengers will benefit from some of the lowest fares in the country.
Mayor Dan Norris's plan - in partnership with First Bus - builds on the ‘fare deal’ that he first introduced in 2022.
But the Mayor wants to go further and says he will bring proposals to the Mayoral Combined Authority Committee in January.
The Mayor says it is important to ensure that people right across the region - urban and rural - benefit from the agreement.
Dan Norris, the Mayor of the West of England, said:
“Keeping fares as affordable as possible for local people is crucial for our regional economy and the environment.
“This agreement will mean cheaper fares than the national average and a good deal for people living in more remote areas.
“Meanwhile we are continuing to get on with encouraging tens of thousands of new passengers onto our buses through Birthday Buses, as a key way to grow a sustainable bus network.”