"Broad agreement" has been reached in talks between the five parties in the Stormont power-sharing administration.
Consensus between the five parties and the Irish and British governments was reached after 11 weeks of talks, which culminated with a 30-hour round of negotiations at Stormont House.
The talks were aimed at reaching agreement on a range of wrangles creating logjams in the administration.
Long-standing peace process disputes on flags, parades and the legacy of the past were on the agenda, as were more immediate budgetary concerns, in particular the Executive's non-implementation of the British government's welfare reforms.
Negotiations were also focusing on the structures and governance arrangements at Stormont.
Crucial to negotiations were the terms of a new £2 billion financial package proposed by British Prime Minister David Cameron.
The Irish Government will also make a financial contribution to the planned A5 motorway linking Monaghan to Derry.
Minister for Foreign Affairs Charlie Flanagan described the negotiations as "challenging and difficult".
Mr Flanagan said the talks had been a "test of endurance".
He said he was delighted that there had been a resolve to ensure those involved could "forge a successful conclusion to the deliberations".
Mr Flanagan said it was significant that "on one of the darkest days of winter", the parties had been able to "forge a broad agreement that would give rise to brighter days in Belfast and Northern Ireland".
Theresa Villiers, Secretary of State for Northern Ireland, described the agreement as a "genuine step forward" and a "significant boost" for Northern Ireland.
She added: "Real progress had been made on some of the most critical and sensitive issues."
Ms Villiers said she was sure, however, that there would be "many days of hard work ahead".
She said all five parties needed to now commit to the terms of the draft agreement.
Theresa Villiers and Charlie Flanagan on the agreement reached between the parties in the Stormont administration https://t.co/ssgL4fLfTL— RTÉ News (@rtenews) December 23, 2014
Northern Ireland First Minister and DUP leader Peter Robinson said the agreement acknowledged that further work would be required on a number of the issues.
"Of course every one of us would have liked to have had a more comprehensive and complete agreement but this is as much and more than we have ever been able to do on these issues in the past," he said.
"So it is a very significant agreement."
Sinn Féin leader Gerry Adams also indicated via Twitter that his parties negotiating team will be recommending the proposals to the party's Árd Chomhairle.
Mr Adams also said the progress made today must continue in the new year.
Deputy First Minister Martin McGuinness has said he will recommend that Sinn Féin endorses the agreement.
Speaking at a press conference, Mr McGuinness said his party had set out to achieve a comprehensive deal and that much progress had been made "across a range of issues".
He said he was "very proud of our achievement", adding that it was remarkable that the parties had managed, against all odds, to make progress.
Mr McGuinness said the financial package agreed was "very significant", and would help ensure that "adequate protections will be put in place for the most vulnerable".
Taoiseach Enda Kenny has also welcomed the conclusion of the talks, saying "the promise of a brighter future for all of the people of Northern Ireland has prevailed".
Mr Kenny also thanked Mr Flanagan and Minister of state Sean Sherlock for the role in the talks, while also highlighting the close cooperation between the Irish and British governments throughout the process.
welcome Stormont House Agreement. good for NI, especially progress on dealing with legacy of past. hope implementation proceeds w/o delay.— Richard N. Haass (@RichardHaass) December 23, 2014