Telenor and Unitech have announced that they will amicably settle all disputes arising from their joint venture in India.
The agreement, revealed on Thursday, is confidential.
However, the operators have confirmed that the Uninor business will be transferred to a new entity to be controlled by Telenor.
The news brings to a close a dispute that began back in February following the Indian government's decision to cancel all of country's 2G licences.
Unitech has agreed to dispose of its shares in Uninor for a nominal amount but will retain its economic rights in Unitech Wireless.
Unitech nominees will also withdraw from the Uninor board, and all special shareholder rights are suspended.
Consequently, Norway-based Telenor said that it is preparing to participate in the 2G spectrum auction through the new entity, but will announce a final decision at a later date.
All disputes and claims between the operators are due to be withdrawn or concluded following the business transfer and spectrum auction.
Uninor held 22 of India's 122 2G mobile licences, but Telenor threatened to quit the country in May after it wrote down of the rest of its Indian mobile business to the tune of €513 million following their cancellation.
Telenor bought a 67.25 percent stake in Uninor in 2009.