Workers at Arnott's beleaguered biscuit factory in eastern Melbourne have accepted a redundancy package, heralding closure for a campaign to save the plant.

Arnotts, a subsidiary of US food giant Campbell Soup Company, revealed that operations would cease at the factory at the beginning of this month.

More than 200 Arnott's employees gathered to hear the terms of the redundancy package, which included a month's extra pay for every year served at the company, and age bonuses for employees over 40 years old of between one and eight weeks' pay.

In a victory for Union demands, casual workers were offered the same deal as contract staff. Union members have vowed however to continue with a spin-off campaign in a bid to protect the jobs of other workers in Australia's manufacturing industry.