The Democratic Unionist Party and Sinn Féin have reached agreement on proposals to develop the site of the former Maze prison near Lisburn.
Both parties have rejected suggestions from some unionists that the plans, which include a peace-building centre, would glorify terrorism.
The future of the prison site was one of the outstanding issues on which the DUP and Sinn Féin had until now failed to reach agreement.
The jail housed republican and loyalist prisoners and was closed ten years ago, following the Good Friday Agreement.
For republicans it has always had significance as the place where ten prisoners died on hunger strike in 1981.
When demolition of most of the complex began four years ago there were proposals to develop a multi-purpose stadium that would cater for soccer, rugby and GAA.
That plan was dropped last year.
Northern Ireland First Minister Peter Robinson and Deputy First Minister Martin McGuinness are now proposing the establishment of a development corporation for the site and they say there could be up to 6,000 construction jobs created.
An international peace building and conflict resolution facility, which is expected to receive EU funding, will be established.
The Royal Ulster Agricultural Society is also planning to relocate to the site from Balmoral during the first phase of the redevelopment.
