The city on Thursday announced it has reached a tentative labor agreement with its police sergeants union.

Mayor Bill de Blasio announced the deal at a news conference at City Hall.

The agreement with the Sergeants Benevolent Association, which covers 4,602 sergeants, authorizes an 11 percent raise over the next seven years at a gross cost to the city of $326 million.

It contains an additional 1 percent raise in its first year.

"The significance is, first of all, this is crucial, the sergeants are a crucial element of the NYPD. And I think it moves us forward as a city to have more and more of the hardworking members of the NYPD under contract,” said de Blasio.

“As mature individuals that have a bigger purpose, I think that based on what I know now and the relationship that we've started to work on that we should be able to work on our differences,” said Ed Mullins, president of the Sergeants Benevolent Association.

Four of the five police unions have now reached a contract. 

The Patrolmen's Benevolent Association is the only police union without a new contract.