The Alliance for Freedom and Change and the military council have agreed to form a joint ruling body, which in turn will install a transitional civilian administration.
A deal is expected to be ready for signing by the two sides early next week.
Following the development the Alliance for Freedom and Change has cancelled a nationwide civil disobedience day planned for later this month.
A prominent protest leader Ahmed al-Rabie and Khalid Omar confirmed to AFP that the civil disobedience campaign had been cancelled.
At least 136 people have been killed since June 3, according to doctors close to the protest movement. However, the Health Ministry has given a lower death toll of 78 people killed over the same period.