The maker of ales such Old Speckled Hen and Abbot Ale is offering 109.5 pence per share for its 750 managed and 450 leased pubs, comprising 0.1322 Greene King shares and a cash payment of eight pence.
The board of Spirits Pubs said it would recommend the revised offer to shareholders which would give them a 29 per cent stake in the combined business.
Greene King last month offered 100 pence per share which Spirit rejected as “it undervalued Spirit and its attractive prospects”.
There's no clinking of glasses quite yet as the deadline for Greene King’s firm offer is 30 October.
Spirit Pubs is due to report full year results on Wednesday.