In a unilateral action, Mayor Bloomberg yesterday rescinded plans that have been brewing for months to lay off 4,419 teachers and said he’d find $400 million to pay for them by freezing all teacher and principal salaries for two years.

The teachers union applauded the no-layoff announcement and quickly rejected the notion it would ever agree to a wage freeze.

“The mayor can take money in and out of the budget however he sees fit,” said Mike Mulgrew, president of the United Federation of Teachers. “That has nothing to do with our negotiations, whatsoever.”