Highways firm Amey is to pay £300 million to call time on its controversial maintenance contract with Birmingham City Council.
The council's cabinet has confirmed it plans to rubber stamp the settlement with Amey, bringing to over the state of the city's roads.
The financial details of the expected settlement were given in a secret session of the cabinet on Tuesday but sources have told BusinessLive that Amey will pay £300 million in order to buy its way out of the deal.
The deal is due to be signed by the weekend, barring last-minute changes with details confirmed next week but it is understood the jobs of affected staff will be secured.
City chiefs agreed in May that they urgently needed to end the roads deal with Amey amid mounting anger about potholes and poorly maintained pavements.
In a damning report, the city council accused the company of failing to meet professional standards of workmanship, not doing urgent repairs quickly and being "unreasonable and argumentative" when pulled up on its failings.
On Tuesday, the cabinet learned that heads of terms had been agreed between the parties involved "with an intention to agree a legally binding settlement before the end of June 2019".
The report to councillors added: "The complexity of this matter should not be underestimated.
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"This is an extremely complex negotiation, involving multiple parties with often conflicting commercial and organisational objectives relating to a very high value contract.
"Nonetheless, these negotiations have agreed heads of terms with an intention to agree a legally binding settlement before the end of June.
"A settlement will enable matters to move forward with regard to replacing Amey Local Government as subcontractor and improving performance and realising investment in respect of highway services."
The report also confirmed the council had brought in external legal advisers to prepare the settlement while the Department of Transport had been consulted throughout discussions and was supportive.
Ending the deal now means the hunt can begin for a new roads contractor.
The deal was launched nine years ago between the city council and the service arm of Amey and was worth £2.7 billion over 25 years.
Considered a landmark of public and private sector collaboration, it has turned sour in recent years and resulted in a flurry of costly court cases and triggered a wave of furious complaints from residents and motorists.
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It was revealed earlier this year how the city two street bollards and another £23 million in a row over three street lights.
Amey itself has been pressing for more than a year to end the relationship, claiming it had been disastrous for the company too.
Birmingham City Council said in a statement: "Negotiations with Amey are at an advanced stage but remain ongoing and it would therefore be inappropriate to discuss details of these commercially confidential negotiations before a settlement has been agreed."